Structured settlements are set up as a resolution to an injury claim, whereby the victim receives a set monthly payment in the form of a tax-free annuity as compensation. The arrangement usually favors both parties, as the victim gets money every month to cover the costs of medications, rehabilitation and other bills and the defendant, or payor, issues easy to swallow smaller monthly installments rather than a large sum of money up front.
However, many people decide to look for a structured settlement buyer rather than opt to receive small monthly payments. Although it's nice to have an ongoing stream of income, you may want or need to have a large some of money for a new investment, a large purchase or to pay off a high interest debt.
In this case, selling your note makes a lot of financial sense, and a reputable buyer of structured settlement payments will be able to provide the cash you need, usually within a couple of weeks. It is a fast and easy way to get your hands on a lump sum of money, especially compared to getting a loan from your bank or another financial institution.
How much will a structured settlement buyer pay you for your note?
That's a good question. It will depend on a variety of factors: the balance on the annuity, the time left before it is paid off, timeliness of payments to date, stability of the payor, and various other criteria. Remember, the buyer of structured settlement payments is assuming a risk by purchasing your note, so it has to make sense for them financially to do so.
To ensure that you receive top dollar try to have all of your paperwork in order, and keep careful records of everything that has transpired since the annuity was set up. This will be very helpful to the structured settlement buyer, and enable them to come up with a fair and competitive quote.
Also, keep in mind you can sell just a portion of the annuity; you don't have to sell the entire thing. So if you only need a certain amount of cash, you can sell "x" number of months of payments and retain the annuity after that time period. An experienced buyer of structured settlement payments will outline all of your available options so that you can make the right decision.
