Through a civil lawsuit, many people are awarded financial compensation, and the court often decides to dole out this compensation in the form of structured settlement annuity payments. These are usually equal monthly installment payments that are provided to you for a period of years or decades, depending on the amount of the settlement. While some enjoy the benefit of this stable source of supplemental income, others need access to the cash today. For example, if you have astronomical medical bills due right now, receiving installment payments years from now may do you little good. You can sell your structured settlement annuity for a lump sum amount to get the cash you urgently need, but first, you need to find a buyer willing to make you an offer.
Working With a Broker
It is possible for you to sell your annuity directly to a buyer, and most buyers of structured settlement annuities are the life insurance companies or other financial institutions that sell annuities. You may even be able to sell your annuity back to the company that issues your payments. However, there are both legitimate, honest companies and companies that will charge astronomical fees and make low-ball offers. Working with an annuities broker or consultant is a wise idea, and this is because a broker has the insider knowledge and insight necessary to steer you in the right direction. He or she can also gather the offers from legitimate companies and help you to review them to find a decent offer. There is a brokerage or consultancy fee that you will be responsible for, but most people find that the services of a skilled, experienced consultant or broker are well worth paying for.
Ensuring the Buyer Is Legitimate
When you work with an annuities broker or consultant, you can typically trust your professional to guide you to the most reputable, legitimate buyers. However, if you choose to sell your structured settlement annuity on your own, you may wonder how you can tell which buyers are legitimate and honest. Buyers should always be licensed to conduct buying activities in your state, so this is the first factor look for. After you have made a list of licensed buyers in your state, you can begin by reading online reviews about each one. Then, you can obtain quotes from the top few companies on your list to find the best overall deal when selling your structured settlement annuity.
What Kind of Offer Can You Expect?
If you have never sold a structured settlement annuity, you may wonder what kind of deal you can expect. Some people may expect to receive an amount that equals the current face value of their annuity, but this is typically not possible. This is because buyers want to obtain a profit from their purchase. However, different buyers have varying profit margins. In most cases, when you work with a legitimate, licensed buyer, you can expect to receive between 65 and 80 percent of the face value of your annuity. Keep in mind that you will need to pay your broker or consultant out of the proceeds as well.
The process of selling your structured settlement annuity can take several weeks or longer to complete after you have located a buyer. Many people are eager to complete the sales process quickly, and they may be inclined to skip important steps, such as finding a qualified, experienced consultant to assist them or verifying that the buyer is legitimate. While your inclination may be to rush through these important steps, rest assured that spending a little time in these areas today can result in a better overall process and a top notch offer on your annuity.