Selling Annuity Payments

Selling your structured settlement or annuity payments can be the solution to a range of financial troubles. Whether you're thinking of buying a house, starting a small business, paying off debt or student loans, using a portion of your future payments can help you get back in control. When you face a serious need, accessing your annuity can be better than putting your life on hold. Get money today by selling your payments, so you can improve your home or get the kids through college — without waiting.

Reasons for Selling Payments

  • Buying or repairing a home
  • Starting or investing in a business
  • Funding a college education
  • Paying off debt (credit card, student loans, medical, etc.)
  • Divorce
  • Investing (property, stocks, retirement fund)
  • Liquidate a long-term investment, such as a seller-financed private mortgage note
  • Losing a job
  • Sustaining an injury
  • Funding an endowment or scholarship
  • Assisting friends or family in financial need
  • Inheriting an annuity
  • Buyer’s remorse
Reasons for Selling Annuity or Structured Settlement Payments

Selling Options


If you sell a portion of your payments, you’ll continue receiving periodic income without losing the tax benefits. The structured settlement will continue to carry those tax benefits, and extend them to your heirs in case you die before collecting all your payments.


Choosing to sell the entirety of your structured settlement for the full term of the contract means you’ll empty out your investment at once, ending any chance of periodic income payments in the future, but you’ll have a lump-sum payment in your hands to invest.

Lump Sum

Selling lump sums over time also gives you money now in large increments, but it still guarantees you’ll have a steady flow of income from your structured settlement for the term of the contract, while carrying the same tax benefits as before.

How Do I Sell My Structured Payments?

The process of selling your structured settlement payments is fairly straightforward, starting with your decision to sell, setting up a court date, and ending with money in your hands. Structured settlement companies complete a total of more than 1,000 transactions per month. However, what we can offer that our competitors can’t is fast, speedy and dedicated customer service; a free quote in minutes and cash advances when approved.

    • 1

      Make the Decision to Sell

      If you need the cash for a valid reason, it’s your only alternative, and selling payments won’t hurt your financial future, then go ahead and start the process.

    • 2

      Contact Us

      Get in touch with one of our representatives who will guide you through all the steps of selling your structured settlement payments.

    • 3

      Get a Free Quote From Us

      We offer competitive pricing, and will guarantee you a free quote in minutes.

    • 4

      We Provide a Cash Advance

      Once you sign up, we can provide you with a cash advance now so you can start using some of your own money immediately.

    • 5

      Setting a Court Date

      After all the paperwork is submitted, you’ll first need to present the reasons for selling your payments before a judge prior to getting your money.

  • 6

    Cash in Your Hand

    Once the court accepts the transfer, you should have access to your money.

Forbidden Annuities

While most annuities, including lottery winnings and structured settlements, can be sold, the law stipulates a few annuities are not eligible for sale. The following annuities cannot be sold:

  • Veterans’ benefits
  • Social Security benefits
  • 401(k) or pension benefits
  • Worker’s compensation payments
  • Divorce settlement payments
  • Child support payments

How Long It Takes To Sell Structured Payments

Selling your structured settlement payments is a legal process and is one that can take some time. In many cases, it takes anywhere from 45 – 60 days to complete the selling process. Timelines may also vary based on individual state laws surrounding the sale of structured settlement payments. If you are in immediate need of cash, many companies that buy structured payments offer small cash advances for sellers.

How Much Will I Receive?

The amount of money you get from selling your future structured settlement payments depends on a few things. The first thing is the company with whom you choose to do business. Many potential sellers shop their future payments in search of the best up-front price. Nothing wrong with that: Our personal representatives offer competitive pricing against all other companies. Your cash-out total also depends on how many payments you sell – and when those payments are scheduled to pay out. The more payments you sell, the more you will cash out. And we advise people to hold on to as many future payments as they can.

Selling Payments Graph

Factors Affecting the Future Value of Your Annuity

  • Amount of payments and how much you wish to sell
  • Length and timing of your payments
  • Any lump sums you may want to sell
  • Current economic conditions
  • Fees and extra charges

Final Price

You will not get full price

You need to go into this process with a clear understanding that this is a business deal. Companies that buy structured settlements intend to profit from their purchases. For you, this means if your annuity is worth $250,000, you’ll be offered less than that in a cash payout.

How much less?

It could be as low as 50 percent. In many cases, the offer will come in at 60 percent to 80 percent of the original value. Percentages are based on market conditions, particularly institutional interest rates set by the Federal Reserve, and conditions constantly change. In effect, the discounted purchase amount is the price you are paying for the ability to tap into immediate money.

Discount Rate

Not surprisingly, the rate at which you discount your future payments is called a discount rate. This is a percentage based on projected future interest earnings, and is a rate you as the seller can set. The average discount rate is 12%. Discount rates are influenced by the total amount of payments you are selling, how many payments you are selling and the date those payments will arrive.

Structured Settlement Loans

Banks view payment streams that come from structured settlements differently than they do other assets. To begin with, banks don’t accept future payments as collateral, so you will not be able to borrow directly against them. However, the rights to your payments can be transferred to a third-party, settlement-buying company. This third party advances you immediate cash – which essentially functions as a loan — in exchange for accepting a portion of your future payments. The company takes on the risk and provides you money to handle your current needs and expenses. In exchange for up front funds, the company then will own all or part of you your future settlement payments.

Transferring Payment Rights to a Third Party for Cash Up Front

Deferred Annuities

If you are the recipient of a structured settlement, you may also choose to enroll in a deferred annuity. This type of contract defers your payments or a lump sum until a later date when you elect to receive them. Life insurance companies that enter into deferred annuity agreements also often offer a guaranteed interest rate on the annuity amount. Many people use deferred annuities as a way to finance their retirement, especially if they have already contributed the maximum amount to other retirement accounts. Withdrawals from deferred annuity accounts are often limited and can be subject to taxes and penalties.

How to Find a Buyer

Although the process may be new to you, selling and buying annuities has been in existence since the 1970s. Many companies specialize in purchasing annuities and may be interested in purchasing yours. Finding a buyer can be as simple as an internet search or asking your accountant for a recommendation. Regardless of how you find a buyer, all reputable buyers should have similar characteristics.

Quality annuity buyers should:

  • Staff helpful customer service representatives
  • Avoid high-pressure sales tactics
  • Offer a low discount rate
  • Encourage the seller to talk with other buyers
  • Encourage the seller to talk with their attorney or accountant
  • Have positive reviews on review sites
  • Employ experienced attorneys to facilitate the sale process
  • Offer cash advances
  • Let you read the paperwork before signing


Research the Laws

Although language in your annuity contract may try to restrict its sale or redirection to any other entity, selling the rights to future payments is legal. Annuity and structured settlement buyers must comply with state and Federal laws. Forty-three states passed laws known as Structured Settlement Protection Acts (SSPAs) that safeguard your rights, while providing rules covering the transfer of structured settlement payment rights to a third party. Congress promotes and regulates settlement use. They passed the Federal Periodic Payment Settlement Act in 1982, ensuring that settlement revenue is not accompanied by local, state or federal taxes. They also require a state court judge to approve transfers and determine whether your reason for wanting to sell your structured settlement is legitimate and in the best interest for you and any dependents.

Financial Planning and Legal Advice on Selling Structured Settlement Payments

Get Advice

Get advice from an attorney or financial planner

Although it may cost you a little bit of money, sound advice from your lawyer or financial analyst may save you thousands of dollars. Your advisors can warn you about a poor valuation of your structured settlement or save you money in taxes. As part of the structured settlement selling process, you will have to be represented by an attorney before a judge or court approves the sale.

Having Your Own Lawyer

Often, your factoring company will provide you an attorney as part of process, but the company won’t discourage you from having your own lawyer. Or, at least, it shouldn’t. If it does, that’s a warning sign that maybe you should look elsewhere for a buyer.

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