If you have a structured settlement annuity and are wanting to cash it out, there are many different companies that you can work with. But, which one is the best company and provides the most money to you?
There is no real simple answer as each company that buys structured settlements is doing so to make a profit based on your payments. Are you wondering how someone can buy a structured settlement for cash and how the whole process works?
If you are receiving income from a structured settlement annuity, those payments are generally fixed income for a set amount of time. When you are considering selling those annuity payments from a structured settlement to a company, they are willing to give you a lump sum payment up front and you transfer the rights to them for the monthly payments.
Let’s look at an example of how you can get cash for your structured settlement annuity payments.
If your annuity is for 30 years, which is pretty standard, and for sake of even numbers to work with, lets say it was for $1 million dollars. Your monthly income is probably around $5,000 per month, give or take a little.
When you agree to sell your monthly payments to a company like JG Wentworth or Peachtree, they will pay you a pro-rated amount based upon the remaining time of the annuity. So, if the balance of your annuity is for $500,000 then they might pay you $250,000 cash in a single lump sum payment.
While this might seem like it is less than the value of the annuity, it is. However, you have to remember that the company is in business to make money. They also factor fees and charges into the amount that they will pay you for the balance. It is also not uncommon for there to potentially be legal fees associated if they purchase a structured settlement from you.
Depending upon how your structured settlement was set up, you might need a judges approval to sell the annuity. This could be in cases where the settlement language required court approval, or if the annuity is for a minor child or dependent.
Finding the right company to sell your structured settlement annuity payments too will be easy to accomplish. There is a wealth of companies that are willing to use this as an investment vehicle for themselves while paying you the cash you desperately need. Our sponsors are some of the best and most knowledgeable companies out there!