Reasons for Selling Structured Settlements

Both as a result of the recession, and changing financial needs, many individuals with structured settlement payment annuities have decided to sell and/or convert their structured settlement payments into a single lump sum cash payment. For many people it is also a very smart decision to enter into such a transaction should the financial need to do so arise. At the same time, though, the decision of “who” to sell to, and what the process of selling structured settlement payment annuities actually entails is both a very complex, and time consuming process. And for the “unwary consumer”, can be a very financially “bad” decision, unless one is aware of ALL the facts!

By now, most people have also seen the endless barrage of daily television commercials offering “cash now” claiming “it’s your money, use it when you want to”; or even the animated cartoon commercials with a dog protecting his “bone”. All paid for by companies engaged in the very lucrative business of buying an individual’s annuities, and structured settlement payments, with all commercials focused on one central theme: THAT a person can get “ALL” of “their” money almost instantly!

The real truth, however, is far more complicated, and despite the inferences and claims “cash now”, the actual process of selling a structured settlement:

1. Requires a Court to approve the transaction;

2. Will also take up to 90 or more days to complete the process; and

3. The final “net” amount received by a seller is far less than the “face value” of structured settlement annuity payment amounts. Plus, not all transactions are approved by a Court, and so there is no guarantee that someone wishing to sell their structured settlement payment annuities will actually get their money now!