The Process of Selling Structured Settlements and Annuities
The process of selling an annuity or structured settlement is not difficult, but it involves you taking the step to sell, deciding how much to sell and going before a judge to approve your request prior to accessing your cash.
Starting the process of selling annuities and structured settlements is simple. Within minutes, you can have a quote, and within 90 days you can have your money in your bank account or a check in your hand.
Get access to your cash by following these six steps:
- Make the decision to sell
- Contact us
- Get a free quote
- Receive a cash advance
- Have a judge to sign off on the transaction
- Get a check
Deciding to Sell Your Structured Settlement
If you are reading this page, chances are you're already considering selling all or part of your structured settlement. That's good. You're doing your homework.
In fact, you should do some serious thinking to determine whether this is the best decision you can make for you and your family. You should ask yourself some tough questions and answer them honestly:
- Do you absolutely need immediate cash?
- Is the reason you need money a valid one, or are you staring at spending this money on something that is not necessary?
- Are you certain that this is the best possible way to raise the necessary money?
- Will selling the rights to future payments of your structured settlement or annuity jeopardize your financial security?
Get used to these kinds of questions. These, and others, are questions you will have to answer during this process if you decide to go through it. Unless you can come up with the right answers, you should not proceed.
The right answers typically involve long-term personal investment. You want to buy a home. You want to provide for a new family member. You want invest in your child's education. You want to invest in your business.
These aren't the only good answers, merely an example of them. If this is where you are and a decision to sell makes sense for you and your loved ones, read on.
Contact Us to Start the Process
Give us a call and find out how much your structured settlement or annuity is worth. We will supply you with a competitive offer, allowing you to know exactly what to expect without having to spend time waiting around.
Various federal and state laws will regulate the transfer procedure and protect your rights throughout. For example, once we tender an offer, it is required by law that we disclose to you in writing all the pertinent details. These include:
- How much of your settlement rights you are selling
- The amount you will receive
- The difference between the value of your settlement payments if the annuity contract were to be maintained vs. their value if sold
Get a Free Quote
During the negotiating process, you will have to supply documentation, including the settlement contract between you and the insurance company that issued your annuity.
You'll also have to convince the buying company that you are making the right decision and that you understand that you will be selling your payment rights at a discount – the difference being the buying company's costs and profit, as well as the variance in value between your future payments and their present worth in ready cash.
Depending on the state in which you live, which will have its own Structured Settlement Protection Act (SSPA), you will either have the right, or the obligation (unless it is waived), to seek outside professional advice before entering into a transfer agreement.
Upon your acceptance of a cash offer, the purchaser will send you the necessary transfer documents to sign and have notarized. The quicker you can return the documents, the sooner the legal process can begin. Getting them through email, for example, instead of regular mail, can be helpful, especially if you need your money quickly. (In some case, regular mail is the only way documents can be sent to you.)
Receive Your Cash Advance
We can help you during this time by providing an upfront cash advance.
After you sign up, the entire process can take up to two months to find out the transfer's final outcome. Annuity.org can offer you an advance, allowing you to access some of your money and have cash on hand during this waiting period.
Not everyone wants or needs their money so soon, but if we feel that you can expect to get a large check soon, we're happy to provide you with a little bit of money now.
Having a Judge Say Yes to Your Sale
Once you return the signed documents, a local attorney – one that we hire to assist you – files them with the court, after which the court will schedule a hearing.
This is where the waiting period begins. You could wait 30 days to get on a court docket, or the wait may be closer to 60 days. Much of this depends on where you live and what is already on the court docket in your area.
Most of the work to get your transaction finalized gets handled on our end. After the initial period of gathering and providing documents, you won't have to do much other than open up your schedule for the final hearing.
You should plan to appear in court, but don’t worry. This is not a daunting, all-day task. It's only a few minutes.
The judge will expect you to reveal all of your personal financial information, justify your need for your money, and will want you to show that you are not putting yourself or your family in financial jeopardy. Judges deal with structured settlement transactions all the time, so what you're doing will not be unusual (although it may be new for you).
In addition, you must identify any interested parties to the court and submit proof that they were notified and given the opportunity to oppose, support or respond to your proposed transfer. Unless the court has a problem with your request, judges typically approve the transfer at this hearing.
Get Your Money
Once the court accepts the transfer, the insurance company will receive the transfer order for acknowledgement and you will receive your lump-sum payment from us—putting a check directly in your hands.
In some cases, when we purchase only a part of your income stream, we begin receiving your contracted payouts directly from the insurance company. We deduct our share of the amount and forward the rest of your payment directly to you.
Remember: You always retain the right to sell any or all of your remaining settlement rights at any time in the future, but in order to do so you must initiate the process over again from the beginning.