A structured settlement sale and transfer is an effective way of accessing cash from future annuity payments; the road to getting that cash starts with finding a reputable structured settlement buyer or broker and obtaining a structured settlement quote. As you do that, there are some safeguards that you'll want to ensure are in place so that you can be sure your cash-out annuity transfer is beneficial to you.

Honesty in structured settlement sales starts at the beginning—with your choice of a structured settlement buyer. Do not be shy about asking prospective brokers about their policies and practices. And do remember that you can (and should) look into their background. Through organizations like the Better Business Bureau (BBB) and the National Structured Settlements Trade Association you can find out whether there have been past complaints lodged against a prospect, and whether their track-record is as clean as it should be.

If at any point in the process or negotiations you do not feel the buyer is being totally open with you, you should at the very least seek the advice of an uninvolved third-party (such as a structured settlement attorney or certified structured settlement consultant); but of course, you should really consider replacing a shady dealer altogether.

Open disclosure in a structured settlement quote is more than just good business—in many places it is the law. Almost every US state and many other provinces have adopted laws regulating structured settlement sales. This they have done to make sure that the details of annuity sales are openly disclosed; so that consumers have all the information they need to weigh the benefits of selling annuity payments. In addition, most of these laws require court approval of the transfer as a second layer of consumer protection.

Whether required by law or not, upstanding structured settlement buyers will be forthcoming with the details in regards to the sale and transfer. The laws that govern states can serve as a good guide to tell you what should be disclosed to you in a structured settlement quote if your region is not regulated.

Most laws governing structured settlement quotes are very similar. They require that disclosures be made in a timely manner, leaving you adequate time to consider the proposal and get any outside opinions that you might need. Generally, the requirements that you should go by are as follows:

• Full disclosure of the terms should be forthcoming at least 10 days prior to closing

Disclosures should include

• The amount of payments to transfer
• The number of transferring payments (and/or percentage if that applies)
• The dates of transferring payments
• The discounted value of payments
• The discount rate
• The amount of money paid to you expressed as a gross amount (before any deductions or fees)
• The amount of money paid to you expressed as a net amount (what you will actually receive in cash)
• A list itemizing the fees paid by you out of the gross purchase amount
• Applicable penalties and associated amounts in the event you breach the contract
• Repercussions and obligations if the buyer breaches the contract

This list includes many of the more important disclosures, but applicable law may include more depending on your location. Of course, if there are others that you would add to it then those, too, should be forthcoming with ease.

Open disclosure and a willing, informative structured settlement buyer is a good sign of a good deal. Granted it is not a guarantee, and you do need to carefully consider the information that you are given, but open disclosure in a structured settlement quote is certainly of great benefit to you; more than that, it may be the law.

by Julie-Ann Amos, professional writer, and owner of international writing agency www.ExquisiteWriting.com

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