News and Tips on structured settlement transfers.


Who Would Buy a Structured Settlement?

Sure, you know why you want to sell your structured settlement – an emergency need for cash fast that can’t be settled any other way.  You may not like the idea of having to wait for your money, and at times like this, it can be pretty inconvenient.  So, why would a company want to buy your settlement from you?

Stability.  A typical structured settlement is backed up by an annuity, usually administered by an insurance company.  If your settlement was related to a personal injury lawsuit, the defendant placed a lump sum with the insurance company, who then put the funds into an annuity contract where they money would be invested in conservative holdings so as to generate a stable stream of interest.  That interest income, plus the initial sum, pays out to you over months or years.  Barring financial disaster for the insurance company and your annuity contract being unprotected, the company who buys your settlement is virtually guaranteed that the stream of payments he is buying will come through as planned.

Rate of Return.  If you’ve been shopping your structured settlement on already, then you’ve found that buyers are offering you lump sums that are less than the total amount of your payment.  This difference is being caused by the discount rate.  It is essentially a reverse interest t percentage that the buyer uses to scale back the payment stream to an amount he is willing to pay you.  The discount rate is intended to cover the buyer’s costs, such as legal fees and administrative overhead, but it also contains his rate of return – his built-in profit.  After all, structured settlement buyers are not in business to provide funds to you, they are looking to make money.  If this seems unfair to you, remember that you are in need of quick cash and the buyer is essentially providing a service.  Also, just as if you were borrowing money from a bank that would charge you interest, there is a charge for getting your money ahead of schedule. 

Here’s the good news for you:  a site like allows you to get several offers from competing buyers, and lets you choose the one that best suits your needs.  Of course, you don’t have to accept any offer, and you don’t have to sell your settlement if you don’t want to.  That’s why you should always weigh the decision to sell heavily, and get objective advice.

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.

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