News and Tips on structured settlement transfers.

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Posts Tagged: selling annuity


13
Jan 14

Reputable Settlement Buyers Buyout Annuities for Lump Sums of Cash

Before accepting any payout option from settlement buyers, it is critical to understand all the options that are available. Individuals that own structured settlements often seek ways to obtain a lump sum buyout by giving up their monthly, quarterly or annual payments. It is imperative to know that settlement buyers who purchase annuities are companies in business to generate profits from every purchase, which often results in a low offer or bid.

Once the decision has been made to accept the payout from settlement buyers, the beneficiaries can often pay for unforeseen medical expenses, ongoing living expenses or to pay down existing debt. Nearly every state in the union has strict statutes that govern how structured settlement annuities can be sold. Many of the laws allow individuals to sell their remaining payments only by proving they have met strict requirements that include:

  • Listening to Professional Advice – Many judges require that the structured settlement annuity beneficiary listen to professional advice to fully understand the details and financial terms of the buyout.
  • Time to Cool Off – Many courts require a specific amount of time to cool off in case the beneficiary changes their mind about selling the annuity.
  • Talking with the Judge – Usually, before the sale or buyout can be completed, the beneficiary will need to participate in a hearing to allow the judge to take full consideration of the beneficiary’s best interest.

It is beneficial to approach at least three different companies or settlement buyers interested in purchasing the annuity. Every company should be reputable, well-funded and established in their industry, with years of business under their belt. In some states, the seller will have to present the offer to the judge in court to receive approval for the buyout. It is always a wise decision to consult an attorney before ever selling a settlement, or agreeing to an offer.


16
Dec 13

An Alternative to Receiving Monthly Structured Settlement Payments

Many people receive structured settlement payments as part of an agreement from an insurance company as a result of an accident or medical malpractice. Usually, the cash payments are received for a specific period of time, on an installment plan. Typically the claimant will receive monthly payments instead of as a lump sum or flat rate.

Often considered a long-term contract, structured settlement payments are designed to offer financial security for the long haul. It provides a source of funds to pay medical bills, living expenses and/or medications. The logic behind issuing structured settlement payments is the assurance that it provides the receiver that they will have the money they need in the future. Often times, the insurance company will provide an annuity with a specific dollar amount paid up front that will produce monthly payments to the beneficiary.

Payment Options

There are numerous options for structured settlement payments other than just receiving a monthly check. The payment schedule can be set as a single annual amount provided to the beneficiary, or a more complex arrangement with special provisions or deferred payments.

The downside of agreeing to structured settlement payments is the limitations and restrictions placed on the beneficiary. Once the court order agreement has been accepted, the terms cannot be changed at a future date. Because of that, it is imperative that the claimant uses the skills of a competent attorney to negotiate terms that meet his or her needs.

Selling the Structured Settlement

Once the beneficiary begins receiving structured settlement payments, he or she can sell the annuity for a lump sum cash amount. The agreement to sell the structured settlement can be designed to only sell a portion of the annuity and allow the beneficiary to continue to receive reduced monthly payments. This option is usually preferable to individuals that require more income than what is provided by the structured settlement.


9
Dec 13

Use a Settlement Calculator to Determine Value of Your Settlement

Those who are in structured settlements are going to be receiving installment payments over the course of a certain period. The length of time of the settlement can vary, as can the amount of the payments. Many factors contribute to this, and the actual value of that settlement can even vary over time due to things such as inflation. Those who are trying to get a better idea of how much their settlement is worth should use a settlement calculator to get started. This can give them a better idea of the value of the settlement, and it can help them to determine if selling the annuities is the right thing to do.

Finding a settlement calculator online should not be much of a challenge today. Plugging in the numbers, including the number of payments left on the plan and the amount of those payments, can help to give you a better idea of what it is worth. Of course, you have to consider other things as well, such as any applicable discount rate. It might be a good idea to input your numbers into several calculators just to make sure that you are getting the actual value.

Knowing the amount that you have remaining can help you determine whether you might want to sell for a lump sum. Try to find a firm that is going to be able to offer you the best deal possible on the amount of money that you have remaining. Always take the time to consider just how much money you need right now to take care of your financial problem. Instead of liquidating all of the payments that you have coming, you might find that you only need to liquidate a portion of them. Use the calculator to determine how much this would be.


26
Mar 13

How to Sell Your Annuity Payments

In the long run, annuity payments can provide a reliable and stable source of income. However, many annuities will be paid over a considerable amount of time, such as lifetime payments, which can go a long way toward providing for those with limited income potential. As ideal as structured payments are, however, they might not be perfect for every situation or instance. They may not be right for you as well, if you are considering selling your annuity payments.

What are Your Needs?

You can’t sell your payments for something trivial, like an RV or a vacation. Any planned structured settlement transfers – such as your annuity – go before a judge who will look at all the facts of your case. Once there, you will have to demonstrate your actual need to his satisfaction – your need for a transfer must be vital or urgent before it will be approved.

Look for Buyers

If the judge determines your need warrants a sale or transfer of your structured settlement payments, you will need to find companies who buy settlements and annuity payments. There are many companies to choose from, but it can be hard to locate and contact a reputable and trustworthy company. You will need to put in a lot of time and effort to find a company that can satisfy your needs. After locating a few possible companies, you’ll need look over and compare the offers they will make to you.

Choosing the Right Company for You

Researching companies and entertaining offers can be a daunting task to take on by yourself, but there are alternatives to making a go of it alone. Many experienced structured settlement companies have contact with some of the most reputable and trustworthy buyers of settlements and annuities. Using a competent broker can be invaluable when selling your annuities. With the right structured settlement broker, you could start receiving offers shortly after completing and turning in your information to them.

Perhaps the biggest benefit to using a settlement broker is having a competent and skilled advisor working on your behalf to ensure you receive offers from the most reliable and trustworthy companies, eliminating the fear of finding yourself trapped by an underhanded, predatory company who only care about getting your money. A helping hand can provide some significant peace of mind, and a competent structured payment settlement broker can provide this, and more, when you choose to let them help your sell your annuity.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


5
Mar 13

Facts You Need to Know Before Selling Your Annuity

An annuity payment may provide you with a steady and reliable source of income, but this may not be enough if the need for a large lump sum of money arises. But there is a way you can receive a large sum of cash instead of scraping by on smaller payments. Selling your annuity might be a viable choice for you if the situation does come up, but there are things you should know in order to determine if this is the right option for your needs.

Laws and Regulations

Before attempting to sell your annuity, you should find out what the state and federal laws are that could affect your sale. Each state is different, so you need to be sure any offer falls within the guidelines set forth by lawmakers to ensure a sale is both fair and warranted in your situation. Legal counsel can be invaluable, and help guide you through the murky and often complicated process of selling your annuity.

Check the Percentages

Another important factor to consider is how much money you would receive from a proposed sale. Naturally, you won’t get 100% of the money owed to you through the annuity, as companies are in business to make money. Companies generally pay a percentage of your total annuity, based on your total amount, your payment terms and other factors. Companies vary in the way they make offers and do business, so careful comparative shopping is a must. Carefully considering each company and comparing offers will guarantee you will get the best deal you possibly can.

Get Multiple Offers

You should get as many offers as you can when deciding to sell your annuity. That way, you will have many different options and offers to compare, giving you the best set of choices to help you in your time of need. A broker can help streamline this process, enabling you to get many offers quickly and help you to make the best decision when it comes to complicated financial matters such as those involved with selling your annuity.

By using the information supplied to you, making the decision to sell or not to sell becomes considerably less difficult. There is a lot to consider before making your decision, however, and a competent and knowledgeable broker can help you make the best choice for your financial future.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


5
Jan 12

How to Sell Annuities?

How to sell annuities? There are numerous reasons why a person would want to sell their structured settlement annuity payments. The main reason is a large unexpected expense that arises, or a drastic change in the personal financial circumstances of an individual. The purpose of selling the structured settlement annuity is to get a lump sum of cash.

Another reason is that some people are just not satisfied with their settlement payment. Whatever your reason, there is a solution for you. You can sell your annuity for a large cash payment.

There are three options available to you;

-You can sell your entire annuity.
-You can sell also sell a few of your payments.
-You can sell a percentage of your payments.

By selling your structured settlement annuity you can receive the money you need immediately, instead of having to wait for monthly installments. And if you sell a percentage or just a portion of your annuities you can still rely on the security of your future annuity payments.

Another reason is that even though your annuity is a decent amount right now, it may not have the same value in the future. Inflation is a constant economic problem. A $1,000 annuity right now may be a decent amount, but in 10 years the same amount of money will not have the same value. And this is where selling your entire structured settlement annuity may be beneficial. But, if you do not want to lose out on the security and reliability of receiving regular payments, you could just sell a portion of the annuity to receive a lump sum that will help you in an emergency situation.

When you first receive a structured settlement annuity, it may be the perfect plan for you. It may be very financial comforting for a period of time. But, circumstances never stay the same. You could be facing unexpected expenses, or you could be drowning in debts, and the monthly installments may not be sufficient anymore. If you need a lump cash payment then selling your annuity may be the perfect solution for you.

There are plenty of buyers who are interested in purchasing settlement annuities and are able to pay cash for them, so it will not be difficult to find a buyer. The problem is finding a buyer who will offer you the amount that you need.

The only drawback to such a solution is the loss that you will be making. Obviously, you will not receive a full cash payment for the entire value of the annuity. The buyers are not making the purchase out of charity. They need to make a profit too. But, you will be able to find a buyer who will be able to offer you a fair amount for your annuity. Make sure that you get as many quotes as you can before you settle on an offer.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


25
Dec 11

Buy My Annuity Payments

There are lots of different ways to fall into an annuity. Some people receive them as compensation for years of work. Others receive them through settlement plans from some lawsuit or potential lawsuit. Others still purchase annuities as a means of investment. When you get the annuity, you almost always think that you will be fine with collecting the money slowly over time. But circumstances can change. Life is such that things are almost always changing and you might need the money right away instead of over the course of time. If I wanted someone to buy my annuity payments, I would need to weigh the decision and make a proper determination first and foremost.

Should I get someone to buy my annuity payments?

This is largely a loaded question. My situation and your situation are likely to be different. If you find yourself in a place where a lump sum of cash would do a great amount of good, then it can make sense to sell your annuity payments to a company that is willing to offer an acceptable lump sum. If you have some investment idea or some pressing need for the money, then you would be wise to get someone to buy your annuity payments for cash right now. Before you make this decision, you need to analyze whether or not it makes sense to you.

In order to do that, one must first understand the time value of money. The basic fundamentals of economics tell us that money right now is better than money in the future if the amount is the same. This is because of all the things that you can do with the money. Inflation is such that the same amount of money now will be worth less in the future. Likewise, if you have investment possibilities, then you could potentially make the money grow at a rate that makes sense. These are things that you will need to think about as you decide whether or not to sell your annuity payments.

Selling your annuity payment rights

You might have guessed by this point that the company that buys your annuity payments will pay a discounted price for them. That is how they make money. Whether or not it makes sense to make this sacrifice ultimately depends upon the price you are getting. You will have to sacrifice something to get the money up front, but you shouldn’t give up too much value. A smart consumer will shop around and settle on the best possible annuity buyer. Some companies are very good at giving you a lump sum quickly. Do your research and work with a reliable, reputable company if you are going to sell your payment rights.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


23
Jan 11

Who Wants Your Annuity?

Someone who has a structured settlement and is considering a sale of it may wonder who would want to buy.  And why? 

The purchase of structured settlements as an investment opportunity is getting more play in the media.  It’s new (not really)!  It’s different (well, OK)!  It gives a great return (correct)!  The allure is understandable:  for an up-front infusion of cash, an investor can take over an existing stream of payments.  Because structured settlement buyers use a discount rate to figure how much they’ll pay, they can control their profits – and rate of return.  With discount rates often in the double digits, the return on a structured settlement can easily beat any stock or bond available in today’s markets.

The current recessionary economy has also created a boon for settlement buyers.  With the economic downturn, structured settlement annuitants are highly motivated to sell.  They need cash to pay medical bills, to survive unemployment, or to hold off foreclosure.  The more desperate the seller, the more likely they’ll accept a highly discounted settlement, and take the deal fast.

Another reason investors love structured settlements:  security.  Most annuities are created when a lawsuit defendant takes a lump sum to an insurance company and purchases it.  The insurance company is able to invest that cash and earn enough interest to make the payment stream to the plaintiff.  These investments are locked in, and usually protected.  As a result, the payment stream is relatively secure.  As long as the insurer stays in business, the payment stream is a certainty.  The only thing the buyer has to do is sit and wait.

But getting into this business can be tough.  Of course, you’ll need access to cash in order to make those initial purchases.  You’ll also need a reserve of cash to meet operating expenses while you’re waiting for those first settlement payments to come in.  You’ll need help navigating the regulatory environment surrounding the sales of structured settlements.  All states have a strict process and timeline for sales, and all of them include a “cooling off” period in which the seller could change his mind.  You might invest a lot of time and resources into a purchase, only to have the seller back out at the last minute. 

Finally, there are a number of very big players in the market who do a high volume of structured settlement buys.  In order to get noticed in a bidding environment like QMAP, you’ll have to make your bid stand out – this may mean taking a lower profit.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


21
Jan 11

Why a FA is an Annuitant’s Best Friend

So, you’re thinking about selling that structured settlement.  Hoping to get a big cash payout.  Got big plans for that money.  So, what next?

Your state may require you to consult with an attorney and/or financial advisor (FA) before you finalize the sale of your settlement.  Even if it doesn’t, finding some good advice is a great idea, even if it costs you a few bucks.

What am I really getting?  A good financial advisor can look at the details of the deals being offered to your by competing buyers (if you haven’t shopped your annuity to more than one buyer, do it now – QMAP offers a free and easy way to get competing bids) to give you a good idea which one is best for you.

Should I Sell at All?  A financial advisor will ask you about the reasons why you’re looking to sell your settlement.  A good FA will try to find alternatives to selling.  Remember that an annuity is designed to ensure you can cover your expenses for a fixed period of time, so you should be sure you’ve exhausted all other possibilities before you sell.   A good FA might find something that you haven’t yet considered. 

Dirty Tricks.  When you seek out a financial advisor for help, find one who’s had recent experience in selling structured settlements.  Chances are, he’s seen what buyers try to do to bump up their profits:  change the deal midstream; introduce new “processing,” “legal,” “administrative” fees; or something similar.  The buyer’s costs should be met as part of the deal, so if you’re asked to pay in additional fees, consider this a red flag.

Details of the Deal.  A financial advisor can look at what’s being offered to you, and figure out how you’ll really come out in the end.  The discount rate is what buyers use to scale back the total amount of your annuity and figure out what they’re willing to pay.  A good FA can figure competing discount rates.  The lowest discount rate – although it means the best lump sum payment for your annuity – can be a sign of trouble if the prospective buyer tends to float a favorable offer, only to pull it back later.

Who Are You?  Still, don’t just trust anyone who hangs a “Financial Advisor” shingle outside his door.  All those letters after his name should mean something, and a few quick Internet searches will tell you what.  Ask him specifically about his experience with structured settlements, and find out how recently he’s handled one.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


19
Jan 11

Structured Settlement Concepts – Annuities

If you’re the owner of a structured settlement, you may hear the term annuity a lot in connection with your settlement.  What does it mean, anyway?

An annuity is defined as a financial product sold by financial institutions that is designed to accept funds and then pay out a stream of payments to the individual at a later point in time.  Annuities have lots of uses, but in the case of a structured settlement, they allow a defendant in a lawsuit to set aside an amount of cash less than the court-ordered amount.  The amount that goes into the annuity is invested, allowing the amount to grow until it is sufficient to make payments to the plaintiff over the course of several months or years. 

So why would a settlement be arranged like this?  Why doesn’t the defendant just pay you what he owes?  Most likely, the defendant doesn’t have that kind of cash on hand to pay the total lawsuit award, so the structured settlement allows him to satisfy your claim with the cash he has.  Typically the defendant will purchase the annuity through an insurance company.  The defendant pays in enough to be invested and make the future payments, and he’s done.

But there’s another purpose to the structured settlement annuity, and it’s meant to protect you.  If you’ve been injured in an accident, you may be disabled and unable to work.  The structured settlement ensures that you will have a steady stream of cash to pay your living expenses for a fixed amount of time.  It prevents you from spending everything right away, and because the payments come in intervals, there’s no chance the money will burn a hole in your pocket.  The structured settlement protects you from you.

However, you may be facing unforeseen circumstances, such as medical or legal expenses, or tuition, and need access to the full amount of your settlement now.  So, you may sell all or part of the structured settlement payment stream for a lump sum of cash.  Just remember:

  1.  You will get less in a lump sum than you would have received over time.  The buyer of your settlement will use a discount rate to reduce the amount of your total settlement to today’s dollars.
  2. Structured settlement buyers are companies looking to make an investment and turn a profit.  They are not in business to help you, so make sure that selling is your best and only option.
  3. The sale of a structured settlement will take some 45-60 days, or even longer depending on your state.  If you need money sooner than that, selling your settlement won’t help.
  4. Selling is forever.  Once the payment stream is sold, you will never have access to it again.  If living without your annuity is an unpleasant thought, don’t sell.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.