1.Making the Choice

 

Why would I give up a secured income? What are the benefits? When you are receiving structured settlement or annuity payments, you are receiving small periodic payments. The sum total of these payments includes interest you have not earned yet. When choosing to sell structured settlements you are choosing to receive a one-time lump sum of cash in lieu of periodic payments. Selling structured settlements is a personal choice that should be based on your current and future financial goals and immediate needs. The realization that the payments they are receiving aid very little or not at all become evident and these individuals have chosen to act on their right to receive their money now. Once you have received your lump sum, you can put it to use immediately any way you choose. Repair, upgrade, build, or buy a home. Pay for college tuition. Take a dream vacation. Reinvest and grow your money with dividends. You can choose to sell all or a portion of your future payments. You may have a immediate need for cash because of an unforeseen expense such as in injury or illness, or accident. You can sell a portion of your payments for a lump sum now to use for these expenses and still receive payments from the remaining settlement amount. Your future payments include interest you have not earned yet. One extremely important factor to consider when you are selling structured settlements is how much your future payments will actually be worth. Your payments decrease in value as inflation and the higher cost of living eat away at it's ability to pay tomorrow what it can pay for today. When you sell a structured settlement, you will receive a lump sum based on the current value of the total sum of your payments without the unearned interest. You will need to find out how much money your future payments are worth by getting a quote. Getting a quote is fast and easy!

 

A great example of why someone may choose to sell structured settlements or annuity payments in part rather than wholly is a first home purchase. Many times, you are unaware as a first time homeowner of the associated costs of maintaining and up keeping a home. The idea of mowing your own yard was great until you had to work overtime and now you are paying for a lawn service. You could use the lump sum you receive for a down payment on the purchase of a home, and choose to keep a portion of your payments to supplement your income and help pay for the inevitable home repair or service.

2. Getting the right quote:

After you have decided you want to sell your structured settlement, you will need to find out how much your future payments are worth by getting a quote from a reputable company. You can get a quote online or over the phone. Most companies will be able to provide you with an offer for your entire settlement as well as an offer for a partial amount of your payments in moments, and it is free! Deciding which company, you will sell to can seem like a daunting challenge. With so many to choose from it may feel overwhelming, but you can contact as many companies as you wish with no obligation whatsoever! The object is to compare several quotes and find out who will give you the most money. Just a few minutes to take the time to get several quotes can sometimes mean a difference in thousands of dollars. Your current financial needs and future goals will determine if you want to sell all or some of your payments. The lump sum offer you receive will be directly reflective of the amount of payments you sell and their current worth.

You will need to know three things about your structured settlement or when obtaining a quote. That is it! All you need is three basic pieces of information to receive your quote.

1. How much are your payments?

2. How many payments do you have?

3. How often do you receive your payments?

These three little pieces of information will provide the company you are getting a quote from, with the key mathematical components they use in an equation called factoring.

Why are not all quotes the same? The company will determine what your payments are worth without the interest you have not yet earned. They will factor out the interest and present you with a cash offer of the sum total of all payments. Quotes will vary from company to company. Each state carries strict laws that protect individuals from being taken advantage of. These laws require a standard interest rate and percentage are not under estimated or exceeded. Once you receive a quote you are satisfied with, and you know you are getting the most for your money, you can accept the company's lump sum offer. This will be a one-time cash payment deposited into your account ready for immediate use.

 

3. Accepting an offer:

 

When you have decided that you will be selling structured settlement payments, you will receive an offer for a lump sum. This will be a one-time cash payment made to you directly. The company will obtain proof of your payments, prepare a contract to purchase, and handle the legal paperwork. As soon as the appropriate signatures are secured, your paperwork is sent to a court for final review and approval. The court will determine that the agreement is in your best interest before deciding to approve your transaction. A hearing date will be scheduled, and a judge will determine that your transaction complies with state statutes governing the sale of settlement payments. The hearing will consist of a brief appearance before the judge. This is a legal means of protecting all parties to the transaction. The judge will make sure that all parties agree to the terms of the transaction and verify your identity

 

4. Receiving your money

 

Once your case has been approved by a court, the company is notified, and funds are disbursed to you in one payment, commonly referred to as the lump sum. For many individuals who are in need of immediate financial, some companies will offer an immediate cash advance.