19 Tips on how to sell a structured settlement in 2020

19 Tips on how to sell a structured settlement in 2020

How to sell a structured settlementHow to sell a structured settlement begins with a need or want.  You received a structured settlement because of a lawsuit: personal injury, wrongful death, and medical malpractice. But, as you enjoy the periodic stream from the structured settlement, you may need to sell.

How to sell a structured settlement begins with a need or want.  You received a structured settlement because of a lawsuit: personal injury, wrongful death, and medical malpractice. But, as you enjoy the periodic stream from the structured settlement, you may need to sell. Because of the all life-altering events, the agreements are often large enough to make sense for periodic payments. The payment makes sense over time. Circumstances change, and you need a lump sum of cash. Instead of applying for a high-interest loan or selling a property, you can sell some or all the future payments. These let you have the needed cash now.

But keep in mind that these transactions are subject to state and federal laws. So, when you sell some of these payments, the court of law must approve the sale. There are tons of reasons you would need to sell your right to a future annuity for a lump sum.

For example, you want to buy a house, or need to pay off your college loan. But the annuity payments cannot match your wants or needs now.

You may wonder how to sell your structured settlement. How to sell a structured settlement? A structured settlement cannot be changed once you and the at-fault party reach the teams. The life insurance policy company picks up the annuity; the terms are fixed and completed. You can, however, transfer the right to an investor through a factoring company. Before you contact a structured settlement company, here are tips on how to sell a structured settlement.


Tips for Selling Your Structured Settlement


Below, we have compiled tips to help you sell your settlement and take positive steps into your future.

Tip # 1: Be informed

Before you think of selling a structured settlement, take some time to understand the periodic payments’ value. Thus, you can follow the potential repercussion of selling your settlement payments. You will consider the consequences; compare those trade-off to what you will gain if you sell.

Besides, on how to sell a structured settlement, do not let anyone press you. Therefore, take your time to make the best decision for you and your family.


Tip #2: Explore your options.


As you think of selling your structured settlement, consider other options. Selling your structured settlement should be the last resort. Some state has restricted the sale or transfer of right because of future payment to avoid unnecessary purchases. The sale process takes 40 to 60 days, and you can change your mind at any point.

Thus, selling your structured settlement payments is not a decision you take lightly. So, you need to explore other options before you sell your structured settlement.


Tip #3: Contact a tax consultant.


Structured settlementWhile the factoring company or broker can give you some essential advice, some state makes sure you consult with an experienced financial advisor. You must consult with the state attorney and attend financial training. Besides, you consult a professional accountant or tax expert before starting the sale. Thus, they can help you in making the ultimate decision.

Besides, talk to two settlement buyers or verify the answer they give for a second opinion. Always get a second opinion, as it supplements your online research results on the sale.

Besides, you can be more confident the information on the trade is accurate if you research it.  More-so, when you find the same answers from at least two credible sources!


Tip #4: Keep your settlement, if possible.


As you review ways on how to sell a structured settlement, we advocate on not selling your periodic payments. Thus, do not sell if you can help it. But if your settlement must sell, sell only as many amounts as you obsoletely need. Do not trade for fun; only what you have to.

On the same, understand the cost of selling your structure settlement. Besides, nothing in this world comes for free—selling your periodic payments will cost you money (discount rate). So, be sure you understand those costs and those they are worth it.



Tip #5: Crunch the numbers.


Yes, some calculations to back your decision on how to sell a structured settlement.  Make sure you will still have enough cash flow to meet your living expenses, such as retirement. That is if you sell all your future structured settlement payments. Therefore, make sure you still have enough money to pay rent, cover transportation expenses, and so forth.


Tip #6: Don’t let bankruptcy scare you.


Although this varies by situation and location, we know a structured settlement to survive bankruptcy. Yet, bankruptcy is a distasteful option for most folks. In life, you must do what you have to do. But first, talk to your financial advisor or bankrupts lawyer if you are considering this for yourself.

Tip #7: know that selling your settlement is a viable option.


Client First Settlement FundingYes, your structured settlement is a viable option. Selling the periodic payment will get you the money you need, but just do your research to make an informed decision.

Selling the settlement might be the change in life you need. So, the sale in its entirety can be the best thing you have ever done. It offers you incredible financial freedom and relief from financial stress.

Furthermore, finances are critical, but your emotional health is equally important at all. As you find ways to sell a structured settlement, remember that the trade can provide much-needed stress relief.


Tip #8: Move on if you make a mistake.


The sale harbors some risk, and in case you make a critical decision, there is nothing toy can do but forgive yourself. We all make an awful decision from time to time, but we learn from the experience and move on.  According to a famed financial expert, Suze Orman, the biggest obstacles to financial security are:

  • Fear,
  • Shame
  • And anger


A mistake is a mistake, forgive yourself and move on in a better direction. But it is possible that selling your structured settlement will help you recover from a previous grim decision, as long as you are careful and think it through.

Tip #9: Consider the uniqueness of your situation.



Experts are probably right to caution structure owners from selling the payments in most situations. However, every situation is unique. So, you often have to decide that your case is your first, which relieves your emotional stress.


Tip #10: Remember that there is no “one size fits all” financial recipe.


We have raised some excellent points about the benefits of structured settlements and that there is nothing wrong with selling. Besides, they can always find out how to sell a structured settlement if the price is right. But consider your personal needs along with the general financial advice before you decide.


Tip #11: Choose the company that you sell to carefully.


Choose a company that helps you consider your current financial situation, not just their profit margin. Remember, it complicates investment things, thus does not sell or buy lightly.

For example, day trading buys stocks to make a fast profit in a day or a few days. It is a hobby, not a career, and it is one of the best left to the wealthy. Selling structured settlements should not be a way to make money quickly. However, as you work with the best factoring company, careful about taking money out of a structured settlement, you put it into something less secure.


Tip #12: Consider alternative funding


Before you sell your structure settlement, consider a personal loan. Besides, there are many ways to access the money you need. With a good credit score, you can apply for a loan from a financial institution or family members.

Remember that while you cannot use a structured settlement as collateral, add it to the “other income” section of a loan application.


Tip #13: Double-check your information.


Most structured settlement factoring companies offer tons of information about selling structured settlement on their website. You will find many sites and articles on how to sell a structured settlement and other topics. But, the laws and regulations on structured settlement sale changes and guidelines and time change.  Besides, the requirements can vary from state to state.  Thus, double-check the information you receive, especially the pieces related to the legality of selling your periodic payments.

Call the best structure settlement buyer to verify what you already know and apply to your situation, state, and the present time.

Tip #14: Get multiple quotes.


Like everything in life, it pays handsomely to be informed. So, to sell a structured settlement, start by getting multiple quotes from several factoring companies. And make sure the buyers know you are accepting other quotes. But do now tell them how much to trigger a better offer if you keep your additional quotes anonymous.

But remember to consider the amount of money and service that you will receive when making your last decision.


Tip #15: Don’t be pressured.


Client First Settlement FundingCall a faceting company near you with intent to sell. Take them for a test drive; see if it feels good to work with them. You will find some companies pressuring you to make a rushed decision. The best company gives you all the information you need and the same space for you to decide. You will mull all the information and make the best decision for your asset and future financial goal.

Therefore, if someone tried to pressure you too much, you may want to move on to another company.


Tip #15: Ask questions about the process.


How to sell a structured settlement is a process that can be complicated at times?  Ask questions you understand the process and anything specific to the company you are working with.

Remember, if you do not understand something, or are not sure what is required of you, just ask. Besides, as they say in grade school, the only stupid questions are the one that goes unasked.

Tip #16: Run from the company that pushes too hard.


At the time, the annuity holder is unsure if the sale is the best decision you want, work with a company that helps you make a well thought out decision.  The best factoring company will tell you the benefits and negatives of your sale option and encourage you to think things through.

But if the buyer you are talking to simply pushes to make the sale and ignores everything else, including your concerns, hang up and call the next factoring company.


Tip #17: Look for endorsements.


Remember, the structured settlement secondary market is scantly regulated like most other industries are. Thus you need to work with a reputable factoring company. One way to find a reliable company to work with on how to sell a structured settlement is to look for endorsement. Talk to past sellers, professional organizations, among others.


Tip #18: Value customer service, above all.


Anything concerning money matters. You need money to solve your day-to-day challenges. Thus, you want to get the most out of your settlement payments. As you look to sell, how you are treated is very important.  Yes, people first, then money, then things. Be sure to look for companies that make you feel they are placing your needs before the payment.


Tip #19: Remember that bigger is not always better.


In most cases, the size can tell you about the experience. But it does not tell the entire story. When shopping for the right company to sell your structured settlement payments, it looks for one that is big enough—a company that will meet your needs and offers you personalized attention services.

Besides, you need to learn how to weigh information appropriately.  Gather as much information about the company as you can before committing to selling a structured settlement. You can find more about any company at BBB ratings. However, it is not in all situations that the ratings are reliable. Search for a factoring company name with the word “complaints” on the web. It can reveal if anyone was unhappy or upset with the particular company services.


Bottom line how to sell a structured settlement in 2020


Although it may take some time and involves going to court, selling structured settlement payments is easier than it sounds. With trusted advisors to guide you through how to sell a structured settlement process, you are making the right decision and protect yourself from unscrupulous buyers.




  1. National Association of Settlement Purchasers. (n.d.). FAQs About Secondary Market Transfers. Retrieved from https://nasp-usa.com/settlement-transfers/secondary-market-faq/
  2. National Association of Settlement Purchasers. (n.d.). How to Protect Yourself in the Secondary Market. Retrieved from https://nasp-usa.com/settlement-transfers/secondary-market-protection/
  3. National Association of Settlement Purchasers. (n.d.). Structured Settlement Transfers: A Guide to How the Industry Works. Retrieved from https://nasp-usa.com/uploads/misc/NASP_PR_IndustryFAQs_0317.pdf
  4. Structure Settlement, What is it?

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