Sell Structured Insurance Settlements

How to Sell a Structured Insurance Settlement

Selling a structured insurance settlement involves trading periodic payments made to you by an insurance company for a one-time, lump-sum payment. Although the premise sounds simple, many factors go into selling a structured insurance settlement. Thus, knowing how to sell a structured insurance settlement is important to obtain the best deal for your financial situation.

Steps

1. 1
   Know the current cash value of your structured insurance settlement. You have 2 options to calculate its present value.
   

   • Contact a financial adviser. The adviser calculates the amount of inflation from the date you're meeting with him or her to the time that the settlement is paid off.
   • You can use a current value calculator found online at websites. Input the requested information to find out the current value.
2. 
   2
   Choose a list of companies to which you want to sell the structured insurance settlement. You should narrow the list down to 3 or 4 companies.
   

   • Investigate different companies that buy structured insurance settlements.
   • Look for reputable companies that specialize in buying structured settlements. You can search for them online, consult your financial adviser or ask friends.
   • Eliminate any companies that don't have a good rating with business organizations such as the Better Business Bureau (BBB).
3. 
   3
   Obtain several quotes from the companies remaining on your list. You have 2 options.
   

   • You can choose to complete the companies' online forms to receive quotes.
   • You can call the customer service representatives from each company to receive quotes.
4. 
   4
   Select the best quote.
   

   • Choose the quote based on your financial needs, value of the return and price.
   • Tell the company that you want to move forward with selling your structured insurance settlement. Once the company receives the go-ahead, it sends you a contract.
5. 
   

   
   

   
   
   5
   Consult with a lawyer.
   

   • Talk with a lawyer specializing in structured settlements about the quote.
   • Go over the agreement to make sure the contract is properly worded.
   • See if there are any tax consequences, such as the creation of tax liabilities, when you accept the settlement.