We all are not perfect, neither are we were made to be 100% accurate. Everyone makes mistakes. It can be a small mistake or a big one. Let us say you are a doctor. You were operating on your patient, and suddenly, you made a tiny mistake. This mistake costs the patient’s life. Yes, it is a mistake, but look at the cost, the person died because of you. To avoid disputes and getting involved in a lawsuit, there is a solution. This solution will be agreeable, as well as, the best for both parties. The answer is a structured settlement. You can pay cash for structured settlement payments to the injured party. Unquestionably, this is how you get to compensate for your mistake. If you are wondering what a structured settlement is and how someone can receive cash for structured settlement payments, you are on the right page.

There are plenty of ways you can utilize your structured payments. Many people decide in haste, or they get greedy and make a wrong decision. In fact, this hasty decision they may regret their whole life. So, the question is, what are your options, and which one should you choose? Do not worry; we will help you select the right choice according to your situation. This guide will help you understand about structured settlement, as well as, different ways to get cash for structured settlement payments.


What is a Structured Settlement?

Let us say that party A did something wrong by mistake. Party A accidentally hits party B, and now party B is in critical condition. To make things right, party A accepts an agreement to pay money to party B. This is done so party B can recover from the damage. It means if someone is responsible for wrongdoing, then he/she can agree to pay the injured party through the structured settlement process.


If the amount is small, then the wrong doer can pay the injured party just once. It is called a Lump sum. It means a one-time payment. However, if the amount is high, then instead of a lump-sum payment, the wronged party can choose a structured settlement. Through the structured settlement, the injured party will receive a stream of cash in a scheduled manner. For example, instead of filing for a lawsuit, the wrongful party decides to pay money through a structured settlement process. They will pay a fixed amount of money to the injured party in a scheduled amount of time.

If you look at the agreement, it has all the details, including a series of payments the payee will receive as compensation. People prefer structured settlement because it is easier to pay for doing something wrong. It is suitable for the injured party as well. Furthermore, the structured settlement payments will prevent the payee from spending it quickly. The question is, how long will the contract last? The answer is almost the entire life of the payee. It means as long as the payee is alive, he/she will receive a specific amount in a scheduled amount of time. Even after the demise of the injured person, relatives may still get the payments. This has happened in a few cases. Last but not least, it comes with tax exemptions. In simple words, you will receive the amount as per agreement without it being taxed.


How to Get Cash for Structured Settlement Payments?


You can use your structured settlement in many ways. Let us rerun the above scenario again. Party B is in critical condition and needs immediate surgery. The cost of the operation is too much. In fact, party B does not have that much money. The funds received from the structured settlement is not enough to cover the cost of the whole surgery. There is another thing that party B can do, and it is selling their structured settlement. Selling will result in cash for structured settlement payments in a lump sum amount. You can sell your structured settlement to a potential buyer who can, in return, pay you a lump sum. This lump sum can help party B to pay all expenses for the operation.


On the other hand, you will have no control over the settlement once you have sold it. Always check your situation before even looking at this option. Keep in mind, if you are aware of your circumstances, then you can decide which option is the best.

Many thinks selling a structured settlement is a complicated process. However, it really is not overly complicated. You can quickly get cash for structured settlement payments. After analyzing your situation, if your answer is yes, get all of your things prepared and in control.

You can purchase annuities from an insurance company since it is their product. Many people consider buying them to support their long-term retirement plan. It will guarantee them a stream of income during their retirement. On the other hand, people also sell their payments to a third party, which will give them a lump sum of money. Below are all the steps to get cash for structured settlement payments.


Step 1: Research Buyers

The first part of this process, as well as the most crucial step, is to research potential buyers. The best way to find potential buyers, is to find them through the internet. Remember, you have to do your homework in order to find a buyer who is offering the best deal. Search for a company that has mostly positive reviews. In addition, a good rating from the BBB (Better Business Bureau).

You can also get good advice from a financial planner or an accountant. Remember, you need to look for the best company which gives you the most reasonable rates and is trustworthy. If you did your research wrong, you would end up with bad rates and sell your annuity at low prices. Researching the right buyers is the key for getting cash for structured settlement payments.


Step 2: Get a Free Quote

Once you have your target, it is now time to get a quote. Start making calls to their customer service representatives. They will explain the whole process and selling options in an easy way to avoid confusion. Not to mention, they will have excellent communication skills to enhance their customer service. Your task is to ask each company for a free quote.

It is okay to ask for a free quote from multiple companies. Furthermore, you can even tell them that you are getting free quotes from different companies. There is a small chance you might get a better quote if the company knows you are looking for the best quote.

In addition, our advice is to talk to at least two structured settlement buyers. Take free quotes and compare both of them. Always verify the information they tell you to avoid future conflicts. Do not overthink; otherwise, you will start to feel the pressure. Take your time and understand all your options. You need to select the decision, which is best for you, as well as, for your family.


Step 3: Compare and then Select the Right Offer

Once you have received all your offers, now it is time to analyze the data. Analyzing the data is a very crucial step to prevent any future mistake. If you own a structured settlement and want to get cash for structured settlement payments, then it is essential to understand you should sell your debts at a low discounted rate.

If you want cash for structured settlement payments, you can sell it to a factoring company instead of withdrawing money after every week or month. That is a much better decision because removing money through the structured settlement can cost you to surrender charges, and you might need to pay taxes and penalties. These things depend on your age, as well as, how long you had the annuity.


Step 4: Complete Paperwork

Of course, you cannot get cash for structured settlement payments if you skip this part. You do not need to worry because your insurance company and the buyer will handle this part. Once you sign all the documents or paperwork to transfer the ownership of the structured settlement, it will take at least four weeks to process.

In case, if you want to sell future structured settlement payments, you need to sign some various forms. Furthermore, you need to provide some information as well. In addition, to complete this process, you need to send a copy of your original structured settlement agreement to the buyer.

If you lost your original document, you need to contact your insurance company (who provides you the checks). You need to place a request to get a copy of the original structured settlement document. Moreover, you can also ask the lawyer who made that document.


Documents that you need to sell your structured settlement

To sell your structured settlement, you should have:

  • Two forms of Identification
  • Completed application
  • A copy of the original structured settlement agreement
  • Release agreement

To accept the cash for structured settlement payments, you need to sign all these documents, which will be provided by the factoring company. Before signing any document, make sure you read all the terms and conditions. The sooner you return the signed documents, the sooner you will receive cash for the structured settlement. A small tip: always keeps a photocopy of all materials and keep records of all transaction.


Step 5: Get Approved and Receive Your Money

This might be your favorite part because once everything goes smoothly, you can collect your money. The insurance company which issued you the structured settlement needs to approve the sale of your structured settlement. If your deal is legitimate and the buyer has a good reputation, the insurance company will accept it. It means you just sold your structured settlement. Now you can receive the cash for structured settlement payments.

It might take 45 to 90 days to get cash for structured settlement payments. In a few states, they might require sellers to get a professional assessment of the buyer’s sale. However, in other states of the U.S., they give you a “cooling period” where you can rethink selling your structured settlement. It is an excellent initiative, and it can help people reconsider their decision. You should consult your financial advisor about these unique laws before you make your decision.


What is Discount Rate?

In step 2, you might be wondering what a discount rate is? Not everyone is aware of it. Let us say your structured settlement is worth $30K. However, you get a quote of $25K but, initially your structured settlement is worth $30K, what happened to that $5K? That is the discount rate. Every company will have a discount rate.

A discount rate is the difference between the structured settlement’s worth and the quote. It also means the lower the discount rate, the more money you will get. On the other hand, the higher the discount rate, the less money you will receive.

Every seller aims to get a low discount rate. Unfortunately, the discount rate can never be zero, but it can be negotiated. The chances of negotiation are small, but that does not mean you cannot try for it. According to the National Association of Settlement Purchasers, the discount rate will be between 9 to 18 percent.



Many people think selling a structured settlement is a hectic process, but it isn’t. It is pretty simple if you follow all the steps. It might take some time since you cannot get cash for structured settlement payments in one day. This process takes time, and you need to be patient; after all, patience is the key to success.

Cash For Structured Settlement, Is it easy?


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