A structured settlement is a sum of money that is to be paid out in regular installments over a period of months or years. Structured settlement payments are often the result of a successful lawsuit against an individual or business. Most of these settlements are paid by insurance companies on behalf of their clients. For example, if you are injured in a car accident that was not your fault, the other driver’s insurance company will most likely be ordered to pay structured settlement annuities.
The injured party also has the option of requesting a structured settlement lump sum. However, most people choose the structured settlement over the lump sum because it pays more over time. But sometimes people change their minds. That is, they need a large sum of money immediately and the only way to get it is to locate a buyer of structured settlements.
Finding a company that will purchase structured settlements begins with a structured settlement broker. For a small fee or commission these trained professionals with complete structured settlement factoring and determine exactly how much your settlement is worth on the open market.
What should you expect? Well, there’s a reason why companies purchase structured settlements. For starters, they are nearly risk free. The insurance companies that issue them often make regular payments on guaranteed settlements, so it is unlikely that the settlement will not be paid.
As we mentioned earlier, structured settlements are more profitable in the long run because companies that purchase structured settlements will never give the true market value. There are two very simple reasons for this. The first is that they subtract a certain percentage for having to wait for the money. The second is a bit devious, but undeniable.
Simply put, they know that you are desperate for case. After all, you are the one coming to them with a profitable structured settlement. Therefore, they will always offer to purchase structured settlements at the lowest price possible. It is up to the broker to locate the best deal he can find.
But we have gotten a bit ahead of ourselves here. Before you even begin searching for brokers or companies that purchase structured settlements, you must find out if selling settlements is legal in your state. More often than not, the practice is perfectly permissible and you can begin the process of unloading your settlement.
While the broker will do his part by locating a company that will purchase structured settlements, there are a few things you must do on your own. To begin with, you must contact the insurance company that issued the settlement and inform them that you are selling it to another party. The insurance company will then send you the necessary documents for a structured settlement purchase, which must then be forwarded to the buyer. The entire process normally takes about two weeks.