Structured Settlement Cash Out
How To Cash Out Your Payments
Rather than waiting years to receive their payments, some people choose to cash out of their long-term investment. There’s a short but set process for doing this.
- Research Annuity Purchasers – Start by shopping around for the right annuity buyer. Trustworthy annuity purchasers, or factoring companies, will have positive reviews, offer free quotes and avoid high-pressure sales tactics.
- Get a Quote – Your quote should have a low interest rate so you get to keep as much of your money as possible. The average discount rate is 12 percent. The current value of your annuity depends on certain factors like the size and frequency of your payments. If you receive a fair offer that satisfies your financial goals, proceed with the sale.
- Submit Your Paperwork – Once you receive a quote, you must complete paperwork in order for annuity buyers to collect information from your annuity contract. This information helps to explain the terms of your future payments. Other paperwork you’ll need to provide includes identification, tax forms and a contractual document. In some cases, you may be eligible to receive a cash advance.
- Present Your Case Before a Judge – Selling your annuity is a legal process, so the last step involves a brief hearing to obtain court approval of your transfer. Federal and state laws have this safeguard in place to ensure all the details of your transaction are fully disclosed and to make sure the sale is in your best interests.
Between each of these steps, an attorney will handle paperwork and details, including drawing up the agreement and securing a court date. Once the sale is approved, you will receive a lump sum of structured settlement cash.