7 Things to Know About Selling Structured Settlements

Structured Settlement

Are you looking for a way to get some extra cash? If so, you may want to consider selling your structured settlement. Structured settlements can be a great way to receive regular payments, but there are a few things you should know before you sell. We will discuss seven things you need to know about selling your structured settlement.

The Original Seller Of The Structured Settlement Has The Right To Sell It

If you are the original seller of the structured settlement, then you have the right to sell it. This is not true of all types of settlements. For instance, if you were awarded a civil suit judgment or damages in an injury case that was settled with your insurance company, then they would retain ownership of that award until you receive full compensation for your loss.

Structured Settlements Are Designed To Protect Consumers

When someone takes out a loan to purchase significant items such as cars or homes, it can be difficult to make payments. If these individuals could not pay their debts on time, they could lose their property and become financially destitute. Structured settlements are designed to help protect consumers from this very situation.

The Value of a Structured Settlement Depends On Many Factors

When you sell your structured settlement, you must consider its worth. The value of a structured settlement will depend on several different factors, such as the length of time until your last payment and your age when you make the sale. Of course, there are other elements involved, but these two examples should give you a general idea of what factors affect its worth.

If You Have an Annuity, Then It May Be Not Easy To Sell

In some cases, individuals who have purchased annuities from insurance companies find that they cannot sell those annuities for any amount of money at all. This is mainly because an annuity is a product that is designed for investment. Since it can take many years before you accumulate any returns on your initial investments, most insurance companies will not allow these types of contracts to be sold before reaching maturity.

Some Entities Buy Structured Settlements

Some people sell their structured settlement because they cannot wait until all of their payments have been completed and finalize their sale once they have reached a certain age or met some other criterion set forth by the court. If this sounds like you, you may want to consider contacting a company that offers cash for structured settlement. These parties specialize in deciding whether they will purchase your structured settlement and how much they will pay you for it.

Older Consumers Are More Likely To Receive a Lower Offer

If you are a senior citizen or nearing retirement, then there is a chance that the price offered to you by the company which buys your structured settlement from you will be significantly lower than if someone else had been in your shoes. This is mainly because companies who buy relocation settlements consider longevity when deciding how much money they can expect to make from them.

Selling a Structured Settlement May Affect Future Compensation

If you have filed a civil suit against someone over an injury, then selling your structured settlement could affect things such as any future financial compensation that you receive as a result of that suit. While you might not have any choice but to sell your structured settlement, it is essential to understand all of the potential side effects before moving forward with a sale.

Your Retirement Benefits May Be Affected

When you sell a structured settlement, you should also consider how doing so could affect your ability to receive Social Security and other retirement benefits like pension or IRA funds. If you cannot qualify for these types of assistance due to having sold the annuity protecting those assets, it would be wise to consult with an attorney who offers legal services related to structured settlements.

There Are Ways in Which Selling Can Benefit Consumers

If you need fast cash and do not want to wait for all of your structured settlement payments to be completed, you should consider selling the annuity paying those monthly benefits. If it is only a small amount and doesn’t warrant an attorney or if you don’t use attorneys, then there are other options such as free legal services

You Could Suffer Financial Losses during Litigation

If you have been injured and decided to file a civil suit against one or more parties involved, it will likely take some time before any compensation is received from the court system. In many cases, this compensation will come in the form of a settlement that could be cash, annuities, or other forms. However, depending on when you sell your structured settlement, there is a chance that you could lose out financially during the litigation process. For this reason, it is essential to consult with an attorney who specializes in structured settlement law before moving forward.


Although several pros and cons are associated with selling a structured settlement, the choice is up to you. It can be challenging to decide whether or not it would be beneficial for you to sell your structured settlement, but the options do exist. Before making any decisions, consult with an attorney specializing in structured settlement law and financial planning.