Exercising Caution When Selling a Structured Settlement

Exercising Caution When Selling a Structured Settlement

With an economy in state of flux, it may be tempting time to sell a structured settlement for a lump sum.  According to some reports, in September of 2014 unemployment rates dropped in 31 of the United States and estimates have it that the overall unemployment rate has dropped under 6 percent.  This may sound like good news overall but if you have lost your job recently or have been unable to find employment for a while, you may be considering converting a portion of your structured settlement for a lump sum.  You should proceed down this track with caution and only after you have considered all your options.

You will find various companies that buy structured settlement annuities on the internet and you may have seen commercials for others on your television.  Is it a good idea to contact one of these companies and cash out your annuity or part thereof?  The short answer is it depends and it depends on a host of factors that you are in the best position to evaluate and decide upon.

In considering with to move forward, it does not really hurt to get a quote from a reliable buyer and then to explore that alternative with trusted advisers if you so chose.  It also may be prudent to get options from more than one or more buyers and do so with the idea that different companies may provide you dramatically different offers for the very same payments.  This may be based on a host of internal factors regarding the buyers financing or it may be unrelated.  In the end though, does it really matter?  What you want to go with is a buyer you are comfortable with and that is providing you fair value.

Going back to the unemployment factor, if you are in this position and receiving monthly structured settlement payments you may pause and consider selling something other than your full immediately due annuity payments.  While not commonly understood at first, the structured settlement buyer does not have to purchase the full annuity you don’t need to sell structured settlement payments coming due immediately.  Instead, if you are relying on that immediate income but still need a lump sum, you may be best off to ask the buyer of structured annuity to provide you with options that purchase some of the deferred/non-immediate portion of the annuity payments.

Structured Settlement Buyer

Structured Settlement Buyer

When you decide you are interested in a quote, please call us and provide us with an opportunity to earn your business

800-317-3769 

Presuming a Structured Settlement Loan Rate at 9.5%

Presuming a Structured Settlement Loan at 9.5%

Structured Settlement Loans 800-317-3769

Structured Settlement Loans
800-317-3769

There is a various ways to look at an annuity buyout but many customers tend to look at them as if they are a “structured settlement loan“.  By reviewing a proposal in this fashion, a consumer may look at what amount of they are receiving as a lump sum, and what “payments” they are making back to the company through the assignment.  In most cases, however, what the transaction actually is is a “sale” or “assignment” and not technically a “structured settlement loan”.  While some may look at the difference of a “sale” and a “loan” as a mere technicality, the difference is actually quite significant.

One of the key differentials that make most transactions under 26 USC 5891, “not a structured settlement loan” is that the consumer can not “pre-pay” but instead once the transaction is finalized, the consumer gives up the right receive the future structured settlement payments in exchange for a lump sum. That is to say, if you agree to sell X numbers of annuity payments and accept “Y” as a lump sum, the consumer will get the lump sum and irrevocably assign the periodic stream of payments.

Once a consumer understand the ramifications of proceeding in this fashion, and knowing that in fact there is not a structured settlement loan occurring, it may be easier for him or her to proceed.  Reviewing the transaction as if it was loan, however, allows a person to review the option of transferring the payment rights against other forms and manners they may have to acquire money.  For example, a person may look to the rate of a mortgage or credit card interest rate and compare this against the structured settlement assignment effective or nominal rate to compare which is better for the person financially.  The determination is by now means an easy one.

Transactions involving the sale of structured settlement annuity payments often have different effective rates (applying discussion above) and to understand the spectrum better, a consumer is well advised to shop and discuss alternatives with multiple buyers.  Contact the experts at CSF for a full, free and “obligationless” quote

800-317-3769

California Structured Settlement Quotes- Concepts

California Structured Settlement Quotes- Concepts

Sometimes the best answer is not to sell the entire structured settlement for cash even if you are looking for a lump sum.  Alternatives exist that can help you get a lump sum in California for a structured settlement while not converting the entire annuity stream.  Lets take for example the following example of structured settlement buyout.  Here is fictional payment stream, lets say its from an American General annuity:

1. Lump sum of $32,000 in 2020

2. Lump sum of $42,000 in 2024

3.  Lump sum of $52,00 in 2029

4. Lump sum of $64,400 in 2034.

With an annuity that pays out in lump sums due in the future, as opposed to monthly or annually, you may run across a period of time where you need some cash quickly but don’t want to unwind the full security provided by your structured settlement.  We work with people across the country in just such a position; ie., desiring “cash for structured settlement.”

Looking for a Structured Settlement in California? 800-317-3769

Looking for a Structured Settlement in California? 800-317-3769

Using the above referenced periodic payment stream as an example, you may look to convert some but not all of the lump sum structured settlement payments when you get a quote.  For example, you can look to sell:

1. part of each lump sum payments

2. maybe just the first structured settlement lump sum

3.  maybe even just part of the first lump sum structured settlement

4. portion of some but not all of the payments.

Of course, the more your looking to get a quote for, the likely the higher the amount a structured settlement buyer will pay you.  If your goal, however, is to not sell the entire structured settlement, you may want to speak with the buyer about alternatives like those listed below.

The same thought process is true if you look to get money from your monthly settlement annuity payments.  These structured settlement payments are equally valuable to get money from, maybe even more valuable, and this holds true even if the structured settlement payments are life contingent.  Not all payments, however, can be sold- as we often get calls from folks looking to work with monthly payments from things like the Veterans Administration- i.e, VA Benefits.

Consider calling our company if you have a structured settlement annuity and live anywhere in the country.  With specialized knowledge, years of experience and well staffed and friendly team, you can never go wrong by giving a chance to earn business.  It is a simple, free, and no obligation opportunity to get a quote for structured settlement payments.

800-317-3769

Life Contingent Structured Payments: A Review of Options

Life Contingent Structured Payments: A Review of Options

Website request for people looking to sell all sorts of payments are fielded everyday by companies like ours and competitors across the country. You will find information and guidance from a host of individuals that you come across and the various numbers and suggestions may become overwhelming. Ultimately how to proceed, what offer to accept, IF ANY, for cash for life contingent payments may start to feel like a confusing task. There is no reason to rush into any decision with regarding to getting a lump sum in sum from a life contingent structured settlement buyer. Here are some general things to consider.

Like any payment, the timing of when it is due is also critical when looking to sell life contingent payments. All things being equal, a $4,000 monthly life contingent annuity payment is more valuable if it is due next month instead in 2020 or even 2030. The further out the structured settlement life contingent is due, the less valuable it will be- assuming all other factors are the same. That is to say, if you are 30 years old and selling monthly life contingency payments due in 2020, you are likely to realize more money than if the life contingent payments come back in 2040. This is often a hard pill for a potential customer to swallow if they are looking to convert really far out life contingent payments into a lump sum. You may be looking at an offer that gets you a fairly small lump sum in exchange for what appears to be a large aggregate of life contingent payments from a structured settlement.

Beware of Low Quotes to Buy Life Contingent Structured Settlements. Call, We will Offer You MORE Cash

Beware of Low Quotes to Buy Life Contingent Structured Settlements. Call, We will Offer You MORE Cash

We appreciate that and we will take the time to walk you through the numbers so you understand precisely what you are selling and what you are getting. Frequently, people are taken back by how much we CAN actually pay them for payments due far in the future- even as far out as 2050 in some cases. Keep in mind with our expertise, we can generally get you a fairly quick quote for life contingent payments- usually during the initial call or within an hour of the initial request.

While we work with people of all ages and health conditions to get them cash for life contingent payments, it is important to know your health and age matters. We get people lump sums even if they have a criminal record, past DUIs, and even if they have serious health problems. All factors however contribute to what a life contingent structured settlement buyer may be able to pay you if you were wanting to get a lump sum.

Shop around- even shop or prices/offer. You never know what the next structured settlement buyer may pay you. This may sound like odd advice coming from a buyer but by the time you agree to work with us– and you will because we offer the most professional service in the industry, we want you to be confident you made the right choice.

Call today for your free no obligation quote to buy out life contingent structured settlement annuity payments
800-317-3769