Structured Settlement Annuities

Written by Michael Federico
Bookmark and Share

Receiving structured settlement annuities can give a person a steady source of income for many years. Some annuities are paid out for upwards of 40 years. In a lot of cases, a person will not see all of his payments within his lifetime. The stability of structured settlements is what appeals to many people who receive them. They know that no matter what happens they will be getting some money from their investment, inheritance, litigation settlement, or whatever the annuity might be for.

Where some people see stability, others see rigidity. Annuity payments cannot be changed by the insurance companies or state commissions that generally set them up. A pay schedule is, for all intents and purposes, set in stone. People who receive payments in this format often feel as though they are being denied money that is rightfully theirs.

How to Sell Structured Settlement Annuities

People who feel a bit trapped by their structured settlement annuities do have alternatives. They can sell off some of their future payments and receive money in a very short time. They will be giving up money in the sale, but they will have a lot more cash on hand to do things in the present.

There are several things to consider before selling structured settlement payments. First, a court order approving the sale must be obtained. Most settlement brokers will assist in setting this up. Second, a person needs to find a good rate. Some companies simply do not want to pay a person a legitimate amount of money for his future payments. Third, a seller should sell the fewest number of payments possible. If selling 20 payments will allow him to reach his financial goal, he should not sell 21.

Bookmark and Share