Finding Buyers of Structured Settlement Annuities

The last time you came across the term structured settlement, you probably didn't give much thought to it. May be you were able to get the meaning based on the context of the material you were reading. Well, here's a chance to understand what it means. Once you do, the task of finding buyers of structured settlement annuities becomes easy. You may have sued an individual or company for misconduct or negligence. Say you were successful, settled the lawsuit and the court offered you compensation. In this illustration, the assumption is that the court awarded a tidy sum of one million dollars (for illustration purposes).

Okay, you would expect the offending party to write for you a cheque for this amount. Other than getting paid in lump sum you are given a structured settlement. Under this arrangement, you will be paid in installments that will last for a certain period of time. It can be monthly or annually. In such a circumstance, the best option is that of buying an annuity paid for in advance. With the annuity in place, you will be receiving payments that have been scheduled by what you have specified as per the structured settlements rule. Such an arrangement guarantees income for the rest of your life. It also shields you from taxes arising on income from investment.

What does finding buyers of structured settlement annuities entail? For starters, you should do some research in order to unearth companies that buy structured settlement annuities. Find out the duration they have been in business and their track record. Another consideration would be whether they have a presence in your state. At the same time they should be in a position to give you a personalized service. Here are a few guidelines on getting a good buyer:

Ask some important questions: Once you are through with the initial task of singling out buyers, prepare some questions for them. Find out what programs they do have in stock. Most typical programs offer you a lump sum payment while promising to pay on a continuous basis. Before you strike a deal, get to know firsthand the percentage your buyer will be taking from the total distribution. Most buyers exchange annuities for cash at 50% some for less.

Legal advice

Hire or talk to a lawyer before you sign any papers.  Lawyers who are well versed with structured settlements will help you review the terms on offer. Buyers of these settlements don't want to be involved in contracts that would later land them into problems. You see, a lot of money is involved. Any mistake could see the buyer being forced to pay more than what the annuity was. Their reputation is also at stake.


In order for the transaction to kick off, you have to send details of your structured settlement annuity to the buyer. They will evaluate your request, process and use that as the basis for making decisions. The buyer should be ready to assist you by answering your queries promptly and taking you through the process. If you come across buyers that appear to complicate things, decline their offers politely and move on to others.

Mode of payment
This will depend on how you would like to be paid. You can have the money wired to your account. Alternatively, the buyer can issue a cheque. The mode of payment you select will depend on how soon you need the cash. A wire transfer takes a lesser time to go through than a cheque.

As you can see, finding buyers of structured settlement annuities takes a similar process as the sale of assets such as property.

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