How to Sell a Structured Insurance Settlement

Structured settlements are agreements between two or more parties, often arranged as settlement to insurance claims, which provide for periodic payments to be made to an injured party. However, the person receiving the structured settlement payments might come on rough times and need the full amount of his structured settlement at once. If this happens, he can sell the settlement to a company that will buy it for a lump sum payment.

Difficulty: Easy

Instructions

1. Pinpoint the reason that you want to sell your settlement. If you're selling to meet immediate financial needs, then it's probably a good idea to go through with the sale. However, if you're not selling to meet immediate financial needs, make sure that you aren't jeopardizing your future by selling the settlement.

2. Find potential buyers. You'll need to speak with several buyers to make sure that you're getting the best deal for your money.

3. Consult an attorney to check the sales contract before you go through with the sale. This will help make sure that you get exactly what you want from the sale.

4. Speak with a financial planner. You need to be sure that you won't be facing extra tax liabilities and you may need help investing your lump sum payment.

Tips & Warnings

• Your structured settlement will be worth less money in several years than it's worth today due to inflation. Keep this in mind when deciding whether or not to sell your settlement.
• There are fees associated with selling your structured settlement so you won't receive the full settlement amount if you sell it.
• Thoroughly investigate any buyer before selling your settlement. There are a lot of scams and since you'll be dealing with large amounts of money, it's better to be safe than sorry.