Sell Structured Settlements
Sell Structured Settlements
Why Sell Structured Settlements?
Many states in the U.S. have laws to help people sell their structured settlements in a risk-free manner. Structured settlements are sold as follows. The person concerned, who wants to sell his structured settlement, forwards documentation containing the insurance company’s name and settlement payment plan to the settlement purchasers.
Based on this information, the latter provides a free quote. If the person is interested, he sends a copy of his structured settlement policy and the settlement agreement. Then the two parties, the person [Seller] and the buyer [Settlement Purchaser], draw up a mutual agreement. This agreement, along with the application for selling the structured settlement, is submitted to the court for approval.
The court reviews the application to confirm if it is in the best interests of the applicant. The settlement purchaser does all the processing. On average, the court process takes around 2 to 3 months, depending on the state laws in force.
According to Federal and state transfer acts, only personal injury settlements can qualify as structured settlements.
It is important to ensure that the insurance firm and settlement purchase company are licensed, and that all transactions are approved by a court order. Selling structured settlements can help meet major financial needs.
Selling Structured Settlements For Personal Injury Claims
A structured settlement is an agreement by which a party that loses a personal injury lawsuit (the actual payor is usually an insurance company) agrees to pay the judgment to the winner using payments over a period of time rather than payment in lump sum. This future income stream can if desired sold to a third party in exchange for a lump sum payment. The typical procedure is as follows (details may vary according to state law):
(1) The seller sends documentation including information about the insurance company, the amount of the settlement, and the payment plan to the potential buyer.
(2) The potential buyer makes a purchase offer.
(3) The seller (if interested) sends the potential buyer a copy of his structured settlement policy and the settlements agreement.
(4) The seller and the buyer draw up an agreement detailing the proposed transaction.
(5) The seller and the buyer submit the agreement along with an application to the court for approval.
(6) The court reviews the documentation and approves the sale as long as it determines that the transaction is in the best interests of the seller.
The entire process normally takes a few weeks.
An important point to keep in mind is that the price of a structured settlement is always less than the total value of the payments received. Time is money, and a lump sum payment is always worth more than payments over time because a dollar today is almost always worth more than a dollar tomorrow. Therefore it is important to accurately calculate what is called the “time value of money” in order to arrive at a fair price. This calculation is more mathematically precise than most people realize, and guidelines exist for this purpose. Unless you are a mathematician or an insurance actuary, it would be a good idea to seek professional assistance for this purpose.
Choosing a Company To Sell Structured Settlement To
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