When it comes to selling your annuity or structured settlement payments for cash, one of the first things you’ll be required to do is distinguish whether the money you’re requesting is a necessity or something nice to have (e.g. you may want a new car, but do you really need it?). Reputable companies that buy structured settlements will want you to state why you need a lump sum in the near future. If you have a great reason for needing your cash faster, then there are a slew of reasons why selling your structured settlement payments is a good idea.
But before you sign on with the first company that approves and gives you a quote, you should consider when to sell your annuity, how to go about getting the cash, and how to avoid hidden fees.
When You Should Sell Your Annuity or Structured Settlement Payments
Though TV ads may lead you to believe that requesting a lump sum payment for your structure settlement is as easy as picking up the phone, the truth is the phone call is probably the easiest part of the process. Be prepared to engage in a several-week long legal process. If your financial future will benefit from a cash infusion, the paperwork and time in court are a small price to pay. Here are some examples:
- Mike B. was awarded structured settlement payments eight years ago for a car accident that left him with chronic back pain. He needed to have surgery, which had an estimated cost of $25,000. His insurance company only covered a fraction of it. Instead of becoming buried in debt, Mike opted to call RSL Funding and sell a portion of his future payments to pay his medical bills and the physical therapy he would need to fully recover.
- Janice R. recently won a court case that entitled her to monthly payments over the next 20 years. In light of her working at a mid-paying job, Janice wanted to go back to school, and get the education she needed to climb the corporate ladder. Unfortunately, she didn’t qualify for financial aid. Instead of taking out a student loans, Janice decided to sell her structured settlement to RSL Funding and pay for college tuition. The investment paid off handsomely, as she is now a Director at a major tech company.
- Keisha L. purchased an annuity ten years ago. After a string of bad luck, she found herself in about $15,000 worth of debt. She contacted RSL Funding to sell a portion of her annuity to get herself back on track. She now is debt-free, and will still receive the remainder of her annuity payments for years to come.
One of the biggest benefits of selling all or part of your annuity or structured settlement payments is the financial independence it can give you. Instead of taking out a loan that accumulates interest, selling an annuity allows you to better your situation today for a more secure financial future.
You Don’t Have to Sell All Your Annuity Payments
If a firm tells says you must sell all your payments at once or a buyout is a one-time deal, it’s time to start looking for another company to do business with. In addition to knowing both statements are false, it’s important to know the three most common options for selling your annuity:
- Full Payment—An individual can sell their annuity for a single lump sum in a one-time buyout.
- Partial Payment—A partial payment plan allows you to sell a certain number of future payments. Partial payments are the most common option since payments will resume at a later date.
No Hidden Fees When You Work With a Reputable Company
Finding a reputable company to handle your structured settlement is easier said than done. Payday lenders love to prey on customers in need, and if you’re in a bind and strapped for cash, it’s important to remember not to act on panic or any emotions you may be feeling. Since all companies are required to go through the same legal procedures when you sell your annuity, be prepared for the process to take 30 days or more.
Before you sign your name on the dotted line to sell your annuity payments, you may want to hire an attorney or financial provider to peruse the contract and ensure there are no hidden fees or fine print that will make you beholden to any future costs. Not only are we confident that we’ll get you the most for when you sell your annuity or structured settlement, RSL Funding prides itself on making the process transparent. Honest and integrity are important to us, and unlike other factoring companies, we work with clients to ensure both parties are entering into a mutually beneficial partnership. Get started with RSL Funding and find out how much your structured settlement is worth. Request an online quote today.
