Sell Structured Settlements

Sell Structured SettlementsA structured settlement is an agreement by the defendant in a personal injury lawsuit (usually an insurance company) agrees to pay the winning plaintiff with payments over time instead of  a lump sum payment.
If desired, the you can sell structured settlements to someone else in exchange for a lump sum payment.

The following steps describe how to sell structured settlements (state laws may vary):

(1)    The seller sends information about the insurance company, the amount of the settlement, and the payment plan to the potential buyer.

(2)    The potential buyer makes a purchase offer.

(3)    The seller, if interested, sends the potential buyer a copy of his structured settlement policy and the settlement agreement.

(4)    The seller and the buyer draw up an agreement detailing the proposed transaction.

(5)    The seller and the buyer submit the agreement to the court for approval.

(6)    The court reviews the sale and approves it as long the transaction is in the best interests of the seller.

The entire process normally takes a few weeks.

Remember that the price of a structured settlement is always less than the total value of the payments received.

Time is money, and a lump sum payment is always worth more than payments over time because a dollar today is almost always worth more than a dollar tomorrow. Therefore, it is important to accurately calculate what is called the “time value of money” to arrive at a fair price.

This calculation is more complicated than most people realize and there are established guidelines. Unless you are a mathematician or an insurance actuary, it would be a good idea to get professional help to sell structured settlements.

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