Buyers & Purchasers of Structured Settlement Payments

Companies that purchase structured settlement and annuity payments form what is known as a secondary market. There are many buyers on the secondary market, and if you’re looking to sell there are some key points you need to know to obtain the best price for your payments along with good customer service.

Trying to figure out where to sell payments from your annuity or structured settlement? We can help. Although the task may seem difficult, it really isn’t. There are firms specializing in buying payments, and they can get the process started with just one call from you. The journey begins with learning what a buyer does, steps to consider, and finding a buyer who is right for you.

People interested in selling annuities and structured settlement payments turn to structured settlement companies in what is known as a secondary market. The secondary market started about 25 years ago and has grown dramatically as it has developed into a competitive and regulated industry. Buyers are individual investors and businesses who are willing to purchase payment streams in exchange for lump- sum payments.

Whether you have a settlement from a personal injury, or an annuity you inherited from a family member, getting money in the near future requires finding a quality buyer who will deliver the best service available.

What Is the Buyer’s Role?

Structured settlement companies acting as buyers are available online and by telephone to discuss your interest in selling payments. A buyer will review your situation and in most cases provide you with an offer if the terms of your annuity or structured settlement allow you to sell your payments.

Buyers benefit by purchasing your payments at a discount. Although you lose some of the value of your payments, the ability to receive money in a lump sum can be an advantage, especially if you have a financial emergency or want to make a major purchase such as a car or house.

The secondary market stays competitive as buyers use their available resources to provide you with up-front cash, in exchange for waiting months or years for the payments you sold them. While they benefit from the profit margin related to the discount rate and waiting for a long-term payout, you benefit from receiving money now.

Selling Your Payments in the Secondary Market

The primary market for structured settlements is estimated at $6 billion in sales a year, and the secondary market buys its products from the primary market. As these businesses developed, the industry has become highly regulated and closely monitored to protect the seller’s best interest.

Because there are about a dozen companies prominently involved in the secondary market, buying annuity payments, it makes sense to shop around and compare rates.

Remember that companies buying structured settlements are businesses trying to make money. They charge fees for their service, similar to the way banks charge fees for loans or credit card accounts. The fees for structured settlements pay for legal, administrative, recording, filing and miscellaneous work. These fees are usually factored into the settlement.

Once you have chosen a company, they should send you a contract and disclosure statement. You should review the contract and disclosure statement, either with your attorney or a financial advisor. When you sign it and return it to the company buying the annuity payments, they must file it with the appropriate court to get a judge’s approval.

The court then convenes a hearing and may ask you to attend the hearing to answer questions about why you want to sell the structured settlement. If the court agrees to the payout, the judge will approve the transfer and you will receive a lump-sum payment.

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How Do You Find the Best Company?

A simple search on the Internet will reveal numerous structured settlement companies ready to buy your payments. But it is important that you carefully examine the firm you decide to do business with. Check to see how long the company has been in business to ensure you have the opportunity to work with an expert. You can check with the Better Business Bureau or Chamber of Commerce where the business is located to see how other people in your situation have felt about working with a particular company.

You should feel comfortable throughout the process of getting a quote. Avoid companies that put undue pressure on you to sell immediately or have poor ratings from the Better Business Bureau. A trustworthy company should be able to get you money quickly but also take the time to answer any questions you have along the way.

Hiring a broker may help you through this process. Similar to a realtor’s role when you sell a home, a broker will help you sell your annuity for the best price. Brokers are professionals who can lend their expertise when it comes to selecting a company to sell to, negotiating discount rates, explaining and completing paper, and overall protecting your best interest.

If you decide to hire an annuity broker, make sure to ask about their brokerage fee and, if a percentage, calculate how much it will be before you hire them. Brokers should also be certified and licensed to work in the field, and should have positive reviews online.

Your Buyer Checklist

As you begin to narrow your choices for the best structured settlement company, it can become difficult to decide which to choose. Take your time to evaluate your options and make sure the company you choose will provide the best annuity purchasing experience.

Narrow your choices with a checklist. Firms you consider should:

  • Provide helpful customer service representatives and multiple ways to get in touch
  • Make a competitive offer with an adequate payout
  • Present options for an immediate cash advance
  • Be licensed and follow appropriate regulations
  • Have a positive rating from the Better Business Bureau
  • Offer a clear timeline for when you will receive money
  • Have a proven record of customer satisfaction
  • Demonstrate complete familiarity with state laws
  • Provide transparent disclosure of contract information
  • Recommend a consultation with lawyer or financial expert
  • Have positive customer reviews online
  • Have a low denial rate
  • Show stability and financial health, as evidence by a large number of structured payment purchases

Making sure these requirements are met can help you have a smooth selling process. Some final guidelines: Avoid companies that put undue pressure on you to buy immediately and have poor ratings.

Questions to Ask a Buyer

To help you select a structured settlement or annuity buyer, you may also want to ask them some questions. These questions will help identify their expertise and capability to handle your case.

Questions you should ask a potential buying company include:

  • With what agencies are you certified and licensed?
  • What is your denial rate?
  • When does my free quote expire?
  • How much do you offer in cash advances?
  • How long have you been in business?
  • What fees are associated with your purchase of my annuity?
  • How long will the selling process take?
  • Will your attorneys take care of the selling process?

What We Offer

Together, and CBC Settlement Funding have helped thousands of people sell their periodic payments to get cash fast and remains a leader in the annuity and structured settlement buying industry.

We provide cash advances for qualified cases, competitive pricing, flexible options for the number and timing of payment you wish to sell and informational resources. We also have years of experience assisting clients in all 50 states and a staff of seasoned buying analysts ready to answer your questions. We believe we provide the best customer service experience in the structured settlement purchasing industry.

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Page Sources

  1. Haithcock, S. (2013, October 29) Secondary market annuities boast higher yields. Retrieved from:
  2. Campbell, J. (ND) I want to Sell My Structured Settlement – What Is the Process. Retrieved from
  3. Hindert, P. (2012, August 7) “Only Half the Story” Retrieved from
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