A structured settlement buyer is a company that will purchase future payments of an individual’s structured settlement in return for upfront cash. They allow you to sell as much or as little of your structured settlement payments as you’d like, depending on your needs.
How long does it take to sell a structured settlement?
On average, it takes 30 – 45 days to sell structured settlement payments. Selling your structured settlement payments requires court approval which is usually the main cause for any unexpected delays in the transfer. Each state has an individual statue that may determine some of the waiting periods required throughout the process and can be a factor in the amount of time it takes to sell structured settlement payments.
How does one sell a structured settlement?
You get your money. The first step in the process of selling your structured settlement payments is to contact DRB Capital.
Should you sell your structured settlement?
Yes, a judge must approve the sale of your structured settlement. Unlike commercially available annuities, structured settlement annuities are always subject to court approval. This does not mean that it is illegal to sell them. Selling your structured settlement is perfectly legal when a judge approves the sale.
Is it safe to sell a structured settlement?
Once you sell your structured settlement, you will not be able to buy it back, and you will lose the steady guaranteed stream of future income. While the structured settlement sale itself is not taxed, the capital gains on investments, should you decide to further invest the lump sum, will have tax liabilities.

Who buys structured settlement?
Structured Settlement & Annuity Buyers That Will Purchase Your Payments. A structured settlement purchasing company, also known as a factoring company, purchases all or a portion of your future structured settlement or annuity payments in exchange for a lump sum of cash.
What is the purpose of a structured settlement?
A structured settlement is a regular stream of tax-free payments granted to the plaintiff in a civil lawsuit. Structured settlements are meant to provide long-term financial security to the injured party. If the amount of money is small enough, the wronged party may have the option to receive a lump sum settlement.
Is selling a structured settlement a good idea?
Cashing out a structured settlement can be a good way to access a significant amount of cash for an emergency, major life expense such as a home purchase, or to pay college tuition. But before making such a significant decision, review all of the costs carefully.
Can you buy out a structured settlement?
With a buyout of a structured settlement, it works in reverse. You receive an upfront sum and surrender the stream of payments. And instead of paying at a certain interest rate, you surrender those payments at what is called a discount rate.
What is an example of a structured settlement?
Examples of cases that may result in structured settlements include personal injury, workers' compensation, medical malpractice and wrongful death.
Are structured settlements tax free?
Income tax exemption: Structured settlement payments—including growth—are 100% income tax-free. While lump sum cash settlements are income tax-free for physical injury cases, if the money is placed in a traditional investment, then any growth is subject to income taxes.
Should I take a lump sum or structured settlement?
You should take a lump sum settlement for all small settlements and most medium-sized settlements (less than $150,000 or so). But if you are settling a larger case, there are two good reasons for doing a structured settlement. First, the structure guarantees that you won't spend the money too fast.
How much do you get for structured settlement?
The lump sum you receive from the buyer, or factoring company, can be as low as 50 percent of your total future payments, but typically will be between 60 and 80 percent. So if you get $1,000 a month through your structured settlement, you could sell each payment for anywhere from $500 to $800.
How much does it cost to sell a structured settlement?
Most companies charge between 9 and 18%, but it could be higher. You can sell part of your annuity more than once, but your take-home money will be reduced every time because each transaction comes with a set of fixed expenses you'll have to pay.
What to do with a $100000 settlement?
What to Do with a $100,000 Settlement?Sort Out Tax Implications.Find a Financial Advisor.Pay Off the Debts.Invest in a Retirement Home.Start a Business or Help Friends and Family.Donate the Money to the Needy.Final Words.
How do I sell my structured settlement?
You can sell your structured settlement to a factoring company for immediate cash. Although you must first obtain court approval, you have the legal right to cash out your payments, either in part or in full, to a structured settlement buyer.
How can I get my structured settlement money early?
You cannot borrow against your structured settlement, but you can sell all or a portion of it for a lump sum of cash. You can also seek pre-settlement funding or lawsuit advances to cover legal bills prior to a lawsuit settlement.
What is the benefit of a structured settlement?
Structured settlements offer plaintiffs the certainty of payments over a fixed period of time. However, lump sum payments may be better suited for cases involving minors, as they allow for long-term investing, or those suffering from a debilitating injury that will require future medical expenses.
What is better a lump sum or structured settlement?
Structured settlements can save you on taxes versus a lump sum, and for many people work as a form of income or annuity every year. Structured settlements can work in many instances. But they may be less than advantageous in others.
How do structured settlements work?
With a structured settlement, you receive your personal injury settlement or lawsuit award over time instead of in a lump sum. Personal injury plaintiffs who win or settle their cases can often choose to take their winnings as a one-time lump sum or as a series of payments over a period of time.
What is considered a structured settlement?
Allowed by the US Congress since 1982, a structured settlement is: A completely voluntary agreement between the injured victim and the defendant. Under a structured settlement, an injured victim doesn't receive compensation for his or her injuries in one lump sum.
What is a structured settlement and how does it work?
Structured settlements are periodic payments made to a plaintiff who wins or settles a personal injury lawsuit. Instead of receiving a lump sum of...
Where can you sell your structured settlement payments?
You can sell your structured settlement payments to a reputable factoring company, otherwise known as a purchasing company. It is important to do y...
What is the difference between a structured settlement and an annuity?
A structured settlement follows a court process, and it is a stream of payments determined through negotiations between a plaintiff and a defendant...
How much does it cost to sell a structured settlement?
Selling a structured settlement is not a dollar-for-dollar exchange. The purchasing company will charge a discount rate, which typically ranges bet...
How Do Structured Settlements Work?
Legal settlements can be paid out in a one-time lump sum or through a structured settlement where periodic payments are made through a financial product known as an annuity. The key differences between these settlement options are in the areas of long-term financial security and taxes.
Why is structured settlement more than lump sum?
A structured settlement often yields, in total, more than a lump-sum payout would because of the interest your annuity may earn over time.
What happens when a plaintiff receives a lump sum settlement?
When a plaintiff receives a settlement through a one-time lump sum, they might spend it too quickly, robbing them of the long-term financial security that future payments could provide. Moreover, any interest and dividends earned if the lump-sum were to be invested would be subject to taxes.
How are legal settlements paid?
Legal settlements can be paid out in a one-time lump sum or through a structured settlement where periodic payments are made through a financial product known as an annuity. The key differences between these settlement options are in the areas of long-term financial security and taxes. When a plaintiff receives a settlement through ...
What are the pros and cons of structured settlement?
Structured Settlement Pros and Cons 1 Payments are tax-free. 2 In the event of the recipient’s death, the beneficiary can continue to receive tax-free payments. 3 Payments can be scheduled for almost any length of time and can begin immediately or be deferred for as many years as requested. They can include future lump-sum payouts or benefit increases. 4 Spreading out payments over time can reduce the temptation to make large, extravagant purchases and guarantees future income. This is especially helpful if the recipient has a medical condition that will require long-term care. 5 Unlike stocks, bonds and mutual funds, structured settlements do not fluctuate with market changes. Payments are guaranteed by the insurance company that issued the annuity. 6 A structured settlement often yields, in total, more than a lump-sum payout would because of the interest your annuity may earn over time.
What is the role of a judge in an annuity sale?
The role of the judge is to decide if the sale is in the best interest of the annuity owner. Other rules may apply depending on the details of your annuity contract and the laws of the state where you live. The Structured Settlement Protection Act of 2002 provides federal guidelines on such transactions.
What was the purpose of the National Structured Settlements Trade Association?
By 1985, the National Structured Settlements Trade Association formed to preserve and promote structured settlements to injury claimants through education and advocacy.
What is a structured settlement company?
A structured settlement company, also referred to as a factoring company, purchases all or a portion of structured settlements or annuity payments in exchange for a lump sum of cash at a discounted rate.
What happens if you sell a structured settlement?
If a client decides to move forward with the structured settlement or annuity sale, a claim will need to be made in a state court. If the sale is approved, the buyer will pay the agreed amount to the client in exchange for any future payments.
How do Structured Settlement Annuities Work?
A structured settlement agreement governs the terms of the structured settlement. A structured settlement annuity is a contract that details the terms including the total amount due by the defendant. An annuity can be purchased from a life insurance company by the defendant. This enables the defendant to remove any obligation from their own books, transferring the responsibility for payment over to a company that has experience in managing periodic structured settlement payments.
How do plaintiff and defendant work together?
The plaintiff and defendant work together with a qualified assignee to determine the structured settlement agreement terms, including how much the total payments will be and how often they will be paid, as well as any other pertinent details pertaining to frequency and duration of payments.
What happens when a plaintiff sues the defendant?
The plaintiff first sues the defendant to pursue compensation for an injury, illness or death caused by the defendant. Oftentimes the defendant will agree to compensate the plaintiff through a structured settlement (sometimes to prevent the case from going to trial). If the case does make it to trial, the judge may force the defendant to set up a settlement.
Where are quest settlements located?
Quest Settlements® is a leading provider of structured settlements with locations in Los Angeles, San Diego, and Nevada. Get in touch with us right now.
Do settlements decrease over time?
Payments decrease over time. Some structured settlements can begin high and decrease over time. If a person’s income is expected to increase over time, this might be a good option.
How do structured settlements work?
Individuals often receive structured settlements as a result of serious injuries and accidents: for example, car collisions and slip and fall. While the structured settlement payments are an ideal set-up for some people, others decide that they’d like to sell those future payments for a lump sum of cash. Once you’ve decided to move forward with the sale of your future structured settlement payments, you’ll move on to the next step of finding the right structured settlement buyer.
What to think about when choosing a buyer?
For example, is timeliness the most important? Is superior customer service a must-have? Are you looking to only work with companies that have been around for many years? These are just some of the many things to think about before choosing a buyer.
Is structured settlement buyer reputable?
Checking their rating with the Better Business Bureau is one way to confirm whether a structured settlement buyer is reputable.
Is structured settlement funding one size fits all?
Remember, you’re choosing the right structured settlement buyer for you. The term “best” is subjective, and there is no one-size-fits-all solution to choosing the ideal settlement funding company. What works best for you may not be a good fit for someone else, and vice versa.
Who Will Buy My Structured Settlements?
Factoring companies specialize in purchasing structured settlement and annuity payments in exchange for quick cash at a discounted price.
How Do Structured Settlement Purchasing Companies Work?
When you contact a purchasing company, a representative will gather your information and calculate a quote based on how much cash you need and the number of payments you want to sell.
How Do I Know if the Quote Is Fair?
A fair quote should offer a low discount rate. This allows you to keep more of your money. Discount rates can be negotiated, but most factoring companies use a standard rate when calculating quotes.
How Can Annuity.org Help Me Choose a Purchasing Company?
We always recommend you do your own research when investigating structured settlement buyers. But if you’re feeling overwhelmed or are looking for credible industry experts, we can recommend our partners. Together, we’ve helped thousands of people sell their periodic payments to get cash fast.
What factors are taken into account when determining an insurance quote?
Insurance companies take into account several factors when determining your quote, including: The value of your structured settlement annuity. When your payments are disbursed. The number of payments you want to sell. Current market rates.
How long does it take to get an annuity approved?
The entire court approval process takes anywhere from 45 to 60 days to complete. Once a judge signs off on the sale, a copy of the transfer order is sent to the insurance company that administers your structured settlement annuity. Finally, the factoring company will send you a lump-sum payment.
How to get a better quote from multiple companies?
You may get a better quote if a buyer knows you’re a smart shopper looking for the best deal.
How to find a structured settlement buyer
The easiest (and probably the best) way to get a structured settlement buyer is to browse online and check for the companies with a positive review from the Better Business Bureaus.
How can you know the value of your structured settlement?
The value of your structured settlement, in the first place, depends on the company buying a structured settlement. The best company will work with you to come up with an arrangement that is suitable for you and your condition. They should lay out everything before you, including what might make you uncomfortable-provided it’s the truth.
What is a rate when selling a structured settlement?
What is a "rate"? When you are offered to sell your structured settlement, buyers would cite a " discount rate " based on which your structured settlement will be valued.
What is the effective rate for structured settlement payouts?
You may be offered a discount rate of 5-6 percent, but deeper into the disclosure you'll be advised that an effective rate of 20% will be applied. THIS is the rate you should notice. The effective rate will determine how much money you will get.
What is the final price of a contract?
As a rule, the higher the effective rate, the LESS you'll get paid. The final price is what you are actually paid after taking off applicable fees and charges.

Structured Settlement Annuity Buyer Can Help
Offering Various Options
- There is no one-size-fits-all decision when it comes to structured settlement payments and lump sum payments. Some people benefit more from one over the other, and others find that a compromise between the two options is optimal. Additionally, what worked for your life at one point may no longer be the best choice for you. The structured settlement payments may have b…
Purchases
- Oftentimes, people sell some (or all) of their structured settlement payments because they need upfront cash to make a large purchase. These types of purchases vary, but common scenarios include buying a home and purchasing a car. Even if you’re taking out a mortgage for a home purchase, most loans require borrowers to make a down payment toward the purchase of the ho…
Financial Hardships
- Life can be unpredictable, which is why the sudden need for a lump sum payment may arise. When someone is laid off, for example, simply catching up for everyday expenses and mounting bills can be overwhelming. With the COVID-19 pandemic, for instance, mass layoffs resulted in financial challenges for a significant number of people around the world. Many people are strug…
Life Doesn’T Wait, and You Don’T Have to, Either
- Waiting for your periodic payments to arrive in order to save up for a specific goal can be frustrating and overwhelming. We understand this, and as a structured settlement annuity buyer, we want to help you accomplish your goals by receiving that money sooner in one lump sum. Although it can vary based on your specific structured settlement and other factors, the average …