After a few years of having your periodic payments you feel there is a need to sell structured insurance settlement for a lump sum of cash. There could be many reasons why you may want to do this. What do you do now? Well, the following are some steps that you should take so that you make the best decision. This will take you through the first part in selling your structured settlement.
1. The first thing you will want to do is to figure out what your financial needs now, present and future. It is a good idea to seek the advice from a lawyer and/or a financial planner. They may have you consider things that you have not thought of yourself.
2. The next thing to do will be to get in touch with the provider of your payments, and find out the amount left, the number of payments left, and your structured settlement’s terms. Also get all of the contract information so that you can give it to the buyer.
3. Once you have this information you can determine the number of payments you want to sell. You usually have the option to sell all or part of your payments. Also, you can sell payments that are closer to the present or farther into the future. Because of the time value of money, current payments are worth more today than payments farther into the future.
4. Find a reputable structured settlement buyer and make certain that you are comfortable with them.
5. It is best to get proposals from a number of buyers. Look at all the aspects associated with the transaction before you decide which buyer to go with. Some of these factors would include your comfort level, the length of time the buyer has been in business, their reputation, etc.
6. Finally, you will sign a contract with the buyer. Make certain that you have your attorney read over the contract before you sign anything.
7. Now that you have selected which buyer you are going to go with, there is information that you will need to gather to give to the buyer. You can expect the process to take anywhere from a couple of days to a couple of weeks. So the faster you can get all the information together the faster the process will go.
Paperwork Needed To Sell Structured Settlements
- Release
- Court judgment
- Settlement agreement
- Contract from the payment provider or insurance company
- Annuity policy Bank statement or stub to verify payment
- Your own personal information, which could include a state issued ID or driver’s license
- Copy of divorce decree or marriage license (if it applies)
- Documents discharging a bankruptcy (if it applies)
- Information about your lawyer
8. After everything is in the buyer’s hands, this is a good time to ask them what about the underwriting process and how it works. It is a red flag if the buyer says it will take a short time to process the paperwork.
9. Once the underwriting process is done, the buyer will give it to a judge to review. Ask your attorney if you should appear, and if it’s in your best interests. Find out from the buyer what the costs are and who will be responsible to pay them.
10. Once the judge reviews and approves the transaction, the monies can be exchanged.
Remember this is just a set of guidelines, and each situation is unique.