Structured Settlements Authority

When to sell structured insurance settlements

For victims of personal injury, structured insurance settlements play an important role in providing long term care and compensation for loss of income. Most beneficiaries are content to receive these payments over time but many victims don't even realize they have the option of selling their structured insurance settlement payments for cash.

Occasionally, people find themselves in situations where having a lump sum of cash would be more desirable than a stream of annuity payments. Usually there is an event that triggers the need for a cash payment such as paying college tuition, buying a home, or starting a business. Other times it is a life event that triggers the need to sell a structured insurance settlement such as; getting a divorce, settling debts, paying unexpected medical bills. Some individuals may just want to take advantage of a lucrative investment opportunity. For these and other reasons more people are choosing to sell structured settlement payments and take a lump sum of cash vs. waiting for future insurance annuity payments.

While structured insurance settlements are created for the benefit of the victim, they are inflexible and often are inadequate to deal with immediate financial needs or unplanned emergencies. Because of this, the United States Congress and most state governments have agreed that settlement victims should have the ability and right to sell their structured insurance settlement and receive money from insurance settlement in the way they see fit. These new laws require the beneficiary to demonstrate that selling their annuity payments is in their best interest. If the court agrees, it will issue an order authorizing the sale of a structured settlement payment to an authorized third-party. The requirement of court approval is to protect the beneficiary from an inappropriate sale and also to verify that the sale is in the victim's best interest.

Many settlement companies now offer free quotes of cash for structured settlement payments so it is easy and a good idea to see what you settlement is worth. You need to remember that the cash you receive for your structured insurance settlements will be less than the total of all the payments (due to discounting and the time value of money). It is a good idea to compare offers and to shop around.

The decision to sell a structured insurance settlement annuity is a personal one between you and your family. You should never let anyone pressure you into a transaction that you do not feel comfortable with. Since this will be a significant transaction, you may want to consult you attorney and accountant before entering into an agreement. Be sure to do some research before you sell your structured insurance settlement.