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Structured Settlements - How to sell a structured settlement payment?

Updated on November 26, 2009
How to structured settlement in five simple steps?
How to structured settlement in five simple steps?

This article provides step-by-step instructions for selling structured settlements. What is a structured settlement? Structured settlement is an insurance or financial arrangement which includes periodic payment plans through which a claimant agrees to resolve a personal injury negligence claim.

  1. The first and most important step for selling a structured settlement is by having an idea of amount sold and finding a (suitable) buyer. Internet is one of the best resources for gathering and compiling info about structured settlement buyers and prices. The information buyers need to make a sale includes the state of residence of the seller and insurance company’s details. If a seller wishes to continue, you must submit copies of the settlement agreement and the annuity policy.
  1. You can also use the services of a structured settlement broker whose job is to able to lead people to favorable agreements. However, it should be kept in mind by sellers that intermediaries or structured settlement brokers are not in exclusive contracts with insurers.
  1. Pensioners can have immediate access to cash or through the sale of part or all of your structured settlement company’s settlement, but there is a cost involved in the process, as companies pay cash in advance to account for the deduction of taxes and their benefits and in fact tying to sell a structured settlement needs to be avoided because actual amount received by the person is much more below the actual amount that would have been earned in the normal course of occurrence.
  1. Usually, the sellers do not incur out-of-pocket expenses when selling a structured settlement payment. The firm is the one that pays the legal dues and any pre-paid expense made. The whole process of selling structured settlement payments can take anywhere from one and a half to two months. For ensuring a better and smooth sale, the total sale should be made with the consultation of a lawyer and a tax advisor and both of these people should have good expertise in selling structured settlements or payments.
  1. The last step is that the seller should try to understand the whole selling process followed by signing of the purchasing company, which will help him/her in obtaining greater clarity on amount he/she has received from sale of structured payments. After finding out that the sale has gone in favor of seller and its dependents, the court will make an order for insurance company for sending finances or payments to buyer in the future. This transaction will not be taxable.

This was my article on how to sell a structured settlement payment. If you have any questions, let me know.

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    • soni2006 profile image
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      Rajinder Soni 7 years ago from New Delhi, India

      You can translate your hubs in French to English using google translator tool and then edit them for writing good quality hubs: http://translate.google.com/

    • liveforjesus profile image

      liveforjesus 7 years ago

      Im your fun for each day

    • liveforjesus profile image

      liveforjesus 7 years ago

      Hi my Friend SONI2006

      You started to send me through my email, but me; I prefer to write in this miter.

      Please how you found my 2nd hub?

      I want to say to you that my English is not good, but, if you understand French I will send you the hubs in French.

      Thanks a lot.

    • soni2006 profile image
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      Rajinder Soni 7 years ago from New Delhi, India

      Thank you so much friend becoming my fan. I am your fan too.

    • liveforjesus profile image

      liveforjesus 7 years ago

      very good

      im your fun

    • soni2006 profile image
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      Rajinder Soni 7 years ago from New Delhi, India

      Structured settlements is a very good subject to research and write on. Best of luck for your research and analysis of this subject motricio plus thanks for the reading and comment.

    • motricio profile image

      Mauricio Rodriguez 7 years ago from Bogota DC, Colombia

      Thnx for this information, i'll saving it so i can research about this subject.

    • soni2006 profile image
      Author

      Rajinder Soni 7 years ago from New Delhi, India

      I am thankful to you Adam for your kindness and support.

    • AdamCairn profile image

      AdamCairn 7 years ago from UK

      Great, informative article. Thanks for sharing

    • soni2006 profile image
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      Rajinder Soni 7 years ago from New Delhi, India

      Thanks a lot Veronica for the bookmark and the read.

    • Veronica Allen profile image

      Veronica Allen 7 years ago from Georgia

      Thanks for the detailed information. I'll be sure to bookmark this.