Do you receive annuity payments from a lottery winning, a lawsuit settlement, or a life insurance inheritance? Receiving a small payment of your larger balance each month is a nice way to pad your budget; however sometimes it makes more sense to sell your structured settlements to significantly improve your life. Some people find selling a structured settlement is beneficial as starting a business or getting a degree with the cash will generate more money than the annuity payments provided. Other people choose to sell their settlement to buy a house, get out of debt, or make an investment with higher returns to makes their lives more financially stable than getting a small payment each month provides.


Whatever your reasoning, if your are considering selling a structured settlement, you should ask the following four questions before finalizing the deal:

1. How much cash will I get for selling a structured settlement?
   Companies interested in purchasing structured settlements are doing so to make a profit, you will not be able to sell it for the entire value of the settlement. Additionally, you might be subject to a surrender fee of 10% for selling before the terms of the structured settlement are complete. To get the highest value for your structured settlement, you should consult several companies to get a few quotes. Some structured settlement companies offer instant quotes online, with makes the process convenient.
2. What options do I have for selling a structured settlement?
   You have several options for how much of your settlement you sell; you do not have to cash in your entire settlement. You have the option of just selling a portion of your payments, which allows you to make the investment that you want while reserving some payments for the future.
3. What documents do I need to gather before I can sell my structured settlement?
   First, you will need to prove that the structured settlement you’re selling belongs to you. You can achieve this by providing the annuity contract to the company purchasing your annuity. If you do not have the contract, you can provide the original court agreement you were given when you initially entered into the structured settlement or a letter of updated benefits provided by the company who manages your structured settlement.
   
   
   Second, you will need to provide proof of residence for the state you live in. The easiest way to do this is by submitting a copy of your driver’s license or state issued ID.
   
   

4. Do I have any restrictions in the sale of my structured settlement?
   You might face restrictions on selling a structured settlement from the state you reside in. At least 38 states have enacted some kind of regulation that restricts the selling of structured settlements. Some states do not allow it at all. There also may be restrictions on selling your settlement listed in your settlement’s contract. It’s a good idea to consult an attorney to understand the full legality of selling your structured settlement.

Have you ever sold a structured settlement? Do you have any advice to share with people just starting the process? Please share your input in the comment section below.