3 Reasons Not to Sell a Structured Settlement
First off, lets explain some good reasons to sell your structured settlement or annuity payments. There are turning points in peoples lives. which require a lump sum of cash. Maybe a son or daughter is going away to college or the opportunity to purchase a new home arises. These are just a couple of reasons which justifies selling a structured settlement.
Having a fixed income is very important in our everyday financial life. It allows us to be able to provide security for our family and live a respectable life that most of us dream about. The financial security of having a guaranteed amount of cash deposited in our bank account each month keeps us worry free about where the money is going to come from to pay our monthly expenses. This type of income creates less stress and creates the freedom to do the things we enjoy the most.
The question you should be asking is "Do I really need this money now?" This question is the basis for our first reason of why you shouldn't sell a structured settlement. What is the true reason you are selling the annuity payments? This answer must be a valid reason because the judge must determine that your reasoning for the sale of the structured settlement is a good one. A judge will not transfer the payments to the financial institution if he does not see a valid reason or does not agree with your viewpoint about your financial future. Buying a brand new BMW is not a good reason to cash in your fixed income, maybe you could settle for a Ford.
The second reason not to sell a structured settlement is if the periodic payments are too far in the future. The problem with this situation is that the value of money today will not be the same as it will be ten years from now. If you are receiving payments that start five to ten years and beyond, it wont make any sense to try and cash them out because they will be worth pennies on a dollar in ten years. A case such as this causes many other difficulties as well. A case of this nature would have a discount rate up above 50% and would not get approved in court even if it made it that far.
The third reason not to sell a structured settlement is if there are other viable sources of cash that are available to you. Once again fixed income is very important to an individuals financial portfolio. Removing this option only hurts the portfolio. There are numerous ways of receiving a lump sum of cash. A bank loan backed by your fixed income is one alternative or accessing the equity in your home would be another. These are just a couple of ways to receive the extra cash that you may be looking for.
How do I sell a structured settlement? This is the question many of our clients ask us here at Settlement Quotes. The process is quite simple for our clients. We have created a system that allows anyone trying to sell a structured settlement a free service that takes out all of the complications involved in selling a structured settlement annuity.
Our main goal was to make our system as self explanatory as possible. Our system can be broken down into 3 easy steps.
1) Go to the form at the top of the page and fill in your name, phone number and email address.
2) Enter your payment stream information which would be the payments you would like to sell, including the lump sum payments, if applicable.
3) Wait by your phone, and an operator will call you within 2 hours with your quote.
This process was created with our clients and the public in mind. This service will beat any legitimate quote offered by any other company. You will receive all of your quotes within 24- 48 hours and have paperwork in your hands within 72 hours.
The entire factoring process takes between 4- 8 weeks to complete. Once you have provided the funding company with the correct paperwork their job begins. They will begin their underwriting process, which includes acquiring a court date from the state your case was originally settled in.
The term "sell structured settlement payments" is incorrect because the payments are not technically being sold, they are being transferred from one party to the other. That is what the factoring process is based off of. To the insurance company who provides these structured settlement annuities there is no change to the date or payment amount of each payment. The only change is the name that is on the check.
At the court hearing a judge will review the case to make sure that transferring some or all of your structured settlement payments is in your best interest. Once the judge approves your case you will receive a check within 24 hours.
If you would like to start the process of transferring your structured settlements you can create an account, fill out the short form above, or call 888-665-1257 to receive an immediate quote.
It has come to our attention at Settlement Quotes that many clients would llike to know why companies want to become the recipient of their structured settlement payments or why they want to purchase the structured settlement.
There are many answers to this question. The most important answer involves the financial strength of the structured settlement annuity that is created to fund the personal injury settlement.
Many of the insurance companies offering products to the structured settlement industry are AA or AAA rated by Standard & Poor's. This rating ensures factoring companies that the annuity they are receiving has strong financial backing. These factoring companies take these structured settlement and annuity backed notes and add them to a larger portfolio were they will securitize these structured settlement annuities.
The money a structured settlement recipient receives during a structured settlement factoring transaction is not the true value of the structured settlement. When factoring companies purchase/ transfer payments into their name, they need to cover worker salaries, advertising, transfer fee's, and other costs not worked into the time value of money equation. All of these costs factor into the deduction of money the structured settlement recipient receives when they transfer their payments to a factoring company.
With this in mind a structured settlement factoring company has risks when purchasing a settlement annuity. This is were the commission for the company takes place. Many factors are worked into the overall commission and cost of money that a factoring company has to calculate before purchasing these annuities. An annuity with a payout 10 years from now is a greater risk than an annuity that is currently paying out. These are the risks the factoring companies are willing to take because these annuities are backed by strong financial institutions.
It is important to ask yourself whether selling your settlement annuities to a larger firm is always the best idea. How many other fee's are worked into your lump sum payment?
At Settlement Quotes we eliminate the large commissions that factoring companies take from your lump sum settlement.
We are #1 -- Structured Settlement Quotes ("SSQ") is America's #1 Structured Settlement Marketplace having served over 11,000 customers and transacted more than $500 million in payments since 2007, and counting.
What we do -- At SSQ we created the first marketplace for you to sell your structured settlement, lottery or other annuity payments. We shop your payments to our Certified Funders, leading funding companies in the industry pre-approved by us, thereby creating a competition to get you the best price while at the same time saving you the hassle and aggravation of having to deal with numerous companies directly.
Here to Serve You -- As you know, the present value of your future payments is dependent upon the discount rate being offered. The lower the discount rate means the more money you get now and the better the deal it is for you.
Before SSQ established its Marketplace in 2007 the industry average discount rate for structured settlements was 19.4 percent*. We felt this was unacceptable and set out to change things.
Over the past five years we have been driving down discount rates. In 2011 SSQ's customer average discount rate was 8.67 percent.
While the funding companies may not like us, we don't work for them. We are here to serve you.
Service Level Commitment -- Our highly trained Customer Service Experts are standing by to provide options that are in your best interest and answer any questions you may have. We stay in touch with you and monitor your case throughout the court ordered transfer process to make sure you are being serviced well and are funded your money in the shortest time possible.
Strength and Experience
SSQ is a Nationwide company in business since January, 2007.
SSQ is an A+ Rated Better Business Bureau Accredited business.
Call us at 1-888-665-1257 and see what your Structured Settlement, Lottery or other annuity payments are worth today!
*see California Attorney General Report 2004
We are #1 -- Structured Settlement Quotes ("SSQ") is America's #1 Structured Settlement Marketplace having served over 11,000 customers and transacted more than $500 million in payments since 2007, and counting.
What we do -- At SSQ we created the first marketplace for you to sell your structured settlement, lottery or other annuity payments. We shop your payments to our Certified Funders, leading funding companies in the industry pre-approved by us, thereby creating a competition to get you the best price while at the same time saving you the hassle and aggravation of having to deal with numerous companies directly.
Here to Serve You -- As you know, the present value of your future payments is dependent upon the discount rate being offered. The lower the discount rate means the more money you get now and the better the deal it is for you.
Before SSQ established its Marketplace in 2007 the industry average discount rate for structured settlements was 19.4 percent*. We felt this was unacceptable and set out to change things.
Over the past five years we have been driving down discount rates. In 2011 SSQ's customer average discount rate was 8.67 percent.
While the funding companies may not like us, we don't work for them. We are here to serve you.
Service Level Commitment -- Our highly trained Customer Service Experts are standing by to provide options that are in your best interest and answer any questions you may have. We stay in touch with you and monitor your case throughout the court ordered transfer process to make sure you are being serviced well and are funded your money in the shortest time possible.
Strength and Experience
SSQ is a Nationwide company in business since January, 2007.
SSQ is an A+ Rated Better Business Bureau Accredited business.
Call us at 1-888-665-1257 and see what your Structured Settlement, Lottery or other annuity payments are worth today!
*see California Attorney General Report 2004
- Settlement Quotes will provide a lump sum of cash
- Companies will compete to buy your payment stream.
- Receive 4 free lump sum quotes from top structured settlement buyers.
Yes you can! SSQ will provide you cash for your structured settlement payments. You will receive four offers and bids for a lump sum payment in exchange for your future structured settlement payments.
Do you receive payments from a personal injury settlement, annuity, structured settlement, or lottery winnings? Settlement Quotes can help you receive a lump sum of cash for your periodic payments.
Periodic payments are a great source of fixed income, and can provide financial security through the years. This security allows individuals to budget their monthly cash flow. As time changes so does your financial responsibilities. Many reasons can occur resulting in receiving cash for structured settlements, in most cases their is a financial burden in the house hold. Cashing in your fixed income can also help build a new business, purchase a home, or put a child through college.
The answer is "Yes." Thousands of people every year sell structured settlement payments for a lump sum of cash.
Settlement Quotes (SQ) is a structured settlement factoring consultant firm. We provide individuals who would like to sell structured settlement payments four quotes and bids for their future payments.
Sell your future Lottery Winnings for Immediate Cash Now.
Did you win a State or other Lottery Prize that requires you to wait to be paid into the future?
If the answer is "Yes" then Structured Settlement Quotes can help you to get the Most Cash Now for your future Lottery Winnings. The wait is over.
Here's how it works:
- Complete the Form above by providing your contact information and a description of the Lottery payments you wish to sell.
- Sit back and relax while SSQ shops your payments to its network of Certified Funders, the most Reputable funding companies in the industry, thereby creating a competition to get you the highest price available.
- SSQ will call you usually within 2 hours and by no later than the next business day to provide you with the Highest Bid **.
- If you choose to accept the offer then SSQ will introduce you to the Funding Company and arrange for the sale process to begin.
- A Notary Public representative will meet with you at your home or other convenient location of your choice next business day to review sale documents and get you signed up.
- You will be funded within 10 business days following the receipt of the mandatory Court transfer order that is arranged at no cost to you.
- The entire process generally takes 6 to 8 weeks, depending on your State of Residence.
**Our offers remain guaranteed and open for acceptance for 48 hours and then may be changed or withdrawn thereafter without further notice to you.
Complete the form above to get started today!
The question is, should you take a lump sum of money or wait to get paid over many years?
The choice it yours. However, you should be aware that Lotteries, which often are owned and operated by State governments, will lock away your money, making you wait to get paid over several years. Why let Government keep your money when you can get it now?
Taking a lump sum of cash for your future lottery winnings can provide you with financial freedom today allowing you to plan for your future.
Customized Payment Plans
Maybe, you have decided that you do not want to sell all of your future payments from your lottery winnings. SSQ's Customer Service Experts will work with you to customize the right deal that meets your specific needs.
Fill out the Form or contact us Today at 888-665-1257. We are here to help.
This question was asked to Settlement Quotes from an individual interested in selling the rights to their structured settlement payments. There are several factors that go into the time it takes to complete a structured settlement factoring transaction, including the state the annuitant resides in, the insurance company, and the factoring company completing the transaction. In most cases the transaction should be completed in 6- 8 weeks.
If you’re receiving structured settlement payments, then you have a reliable, stable source of income for the long term. This offers significant advantages over a lump sum payment. For instance, it prevents you from blowing through that amount very quickly, which is much more common than you might think. Just look at the number of lottery winners who go bankrupt. However, there are times when having all of your money is not only a good idea, but vital. When these situations occur, you need to know how to find the best structured settlement companies to help you sell your payments.
Amount of Time in Business
One of the first things you should look for when comparing your options to find the best structured settlement companies is the length of time they have been in business. While there’s technically nothing wrong with working with a new company, one that has an established history going back several years is a much more stable bet. Brand new companies have no history, no track record for verification and might disappear tomorrow.
A Reputation for Excellence
Another thing you’ll need to consider is the company’s reputation. Obviously, you want to work with a reputable company, but it can be tough to determine what that reputation is. While most companies will offer testimonials on their website from past customers, these are always suspect. One excellent way to find the best structured settlement companies is to ensure that any company you’re considering is registered with and rated by the Better Business Bureau. This not only ensures that the company is on the up and up, but that you have the means to conduct further research into their business practices, customer satisfaction history and more.
Ability to Get Quotes Fast
Finally, you’ll discover that when you find the best structure settlement companies, they will have one thing in common – the ability to get you quotes from buyers very quickly. This gives you the ability to start comparing offers right away. By comparing a significant number of offers from different buyers, you can easily get the best possible deal and ensure that you get as much of your money as possible from the sale.
Keep these tips in mind when comparing structured settlement companies and you’ll be able to enjoy all the money that is coming your way from the settlement.
The process of cashing out a structured settlement is more commonly known as structured settlement factoring, which is the process of transferring the rights to structured settlement payments. Annuitants have several options when cashing out structured settlement payments, including the number of payments to cash out, amount of each payment to cash out, and company that will complete the factoring transaction.
Structured settlements are very common today. You’ll find them in the insurance world, in personal injury and product injury cases, and even with lottery winners. While lump sum payments are still made, structured settlements are the most common option, whether you’re speaking of legal settlements or a lottery payout. How do structured settlements work? What do you need to know about them?
What Is a Structured Settlement?
The first thing to do is understand exactly what a structured settlement is. They’re pretty simple. In essence, a structured settlement takes a specific amount of money awarded to you (through whatever means), and breaks it up into periodic payments. These payments are sent to you over a specified period of time, until the entire amount is paid out.
Benefits of Structured Settlements
When looking to understand how structured settlements work, it’s important to know the benefits offered here. While it’s true that you won’t have all of your money upfront, there are some advantages. For instance, it won’t be possible to spend the money frivolously – this happens more often than you might think. It ensures that you have money coming in that you can count on for some time to come. It also ensures that you don’t have to pay taxes on those installments (when structured correctly).
Cons of Structured Settlements
When looking at how structured settlements work, you’ll certainly find a few drawbacks to the situation. The single largest drawback is that you don’t have access to all of your money, nor can you change the payment situation once it has been set. Therefore, if your living situation changes or you encounter serious financial problems down the road, there’s very little benefit to your payment plan. In fact, it can be very frustrating to know that you have a considerable amount of money due you that could make a very real difference in your life but not be able to get at it.
The Answer
For anyone frustrated with how structured settlements work, there are ways around the situation. For instance, there are companies that will buy your payments for a lump sum. You won’t get 100% of the money coming to you, but you’ll receive it all at one time. Moreover, you can use that money for anything you might need, from paying off creditors to renovating your home. If you choose to sell structured settlement payments, make sure you carefully vet each buyer to find the best choice.
It is important for consumers to better understand the structured settlement factoring industry before transferring the rights to their settlement payments. Many tort victims throughout the next week, month, or year will sell structured settlements without knowing the details of the transaction. Settlement Quotes will publish a weekly FAQ on structured settlement factoring to better educate our clients and other individuals interested in factoring a structured settlement.
Brand?.......Can an industry have a brand? This author believes that the structured settlement factoring industry has been branded by "orientation branding" from some of the larger factoring companies in the industry. The "cash now" brand is not one that Settlement Quotes would like to be associated with. This term is not only improper, but is false advertising when used in relation with structured settlement factoring.
