Purchase Annuity and Structured Settlement

A financial contract between an insurance company and an individual is known as annuity. If you are in need of immediate cash to pay off your debts or meet your medical bills, there are options to encash your annuity. To know more about selling annuity and structured settlement, read on…

When a person meets with an accident, his insurance company gives him a choice. He can chose between a lump sum, or a series of future payments to pay out his medical bills. This form of settlement called structured settlement has become very popular in the last decade. The insurers have marketed the structured settlement as a cost-effective settlement tool.

Structured Settlement Annuity

An agreement or the deal for a periodic payment of compensation to the accident victim or a sick is known as structured settlement. An insurance company makes the payment. The victim can either opt for receiving a stipulated sum at regular intervals or a lump sum.

A payment of fixed amount of money at regular intervals is known as annuity. When a structured settlement is awarded by a lawsuit, the insurance company buys an annuity. The annuity pays an interest on the principal amount for the agreed period of time. This is one of the reasons why structured settlement is also known as the structured settlement annuity. However, if the recipient of the structured settlement is badly in need of money, the structured settlement can be exchanged for entire lump sum or for a part of the recipient’s future annuity payments.

Is it Possible to Sell Annuity and Structured Settlement Payment for Cash?

It is possible to sell annuity and structured settlement payment for cash. You should be aware of the fact that structured settlement is specifically designed to meet your financial obligations over a period of time. However, if you are facing a situation where you are in need of lump sum of cash, then you can sell your annuity or your structured settlement. This arrangement helps in meeting your immediate financial needs. A noteworthy point is you can sell either a part of your annuity/settlement structure or all of it






You should also be aware of the fact, you can sell your structured settlement to pay your annuity. Selling structured settlement to pay off annuity is a complex process. It is advisable to get an assistance of a structured settlement specialist. When you are selling your structured settlement to a private lending institution, it is advisable to do a background check on that financial institution. This is an important step to be taken before you actually start the process of selling structured payment for cash.

Few Tips to Sell Annuity and Structured Settlement Payment for Cash

Keep in mind the following tips when you plan to sell annuity or the structured settlement payment in return for the cash.

Before you plan to sell your annuity and structured settlement, you should have an idea of how much amount of cash you would require. You can sell your annuity and structured settlement to pay off your medical expenses, tuition fees or clear whole or part of your debts. You can sell their annuity to invest in stocks and shares.
Prior to approaching a note investor or financial institution, you have to document the details of your structured settlement. The reason is the private financial institution you are approaching would require details of the life insurance company that is backing your annuity, amount of each payment, the date of payment and also how many payments are remaining.
The note investor or the financial institution would determine the current value of your structured settlement. The investor determines the value of your structured settlement when you provide him with the details such as amount of money required and also how many payments you wish to sell.
Once the investor reviews the information you have provided, he will call you for a discussion regarding the payment options. Apart from that the investors who deal with structured settlements have access to various annuity buyers. An annuity buyer would offer the best deal for your annuity payments.
The entire process of selling the annuity and structured settlement would approximately take 10 to 12 working days to complete. It is wise to clarify your doubts during the initial stages of the process.
Remember that the whole process of selling annuity and the structured settlement is a complex process. You have to scrutinize the note investor or the private financial institution before approaching them. Take the help of a professional prior to making a decision. The specialists in structured settlement and annuity selling would be in a position to clarify your doubts and also give you the required advices.