Choosing a buyer of structured settlement is like choosing any product – you need to be a savvy consumer and ensure that you get what you pay for. As with every product being sold or deal being made, when it comes to selling your structured settlement heed the advice… “Let the buyer beware.” If you are choosing to sell your settlement be sure the company you choose is working in your best interest.
Find Out What You Might Not Know
If you are selling structured settlement payments or taxable annuity payments, make sure the buyer of structured settlement payments that you are dealing with is upfront with you about the costs and expenses involved. In an structured settlement sales transaction, there can be thousands of dollars in costs required to get the deal done, including legal fees relating to court approval and fees charged by the life insurance company. Since these expenses have a significant effect on the discount rate and the net cash offered for your annuity, some firms do not include them in their quotes. Excluding them can make the deal they are offering look better than it actually is.
Additionally, the details of the transaction can be difficult to understand. Unfortunately when speaking with some buyer of structured settlement payment companies, so much is said that you might lose track of what fees are mentioned. Make sure you look over the contract carefully before signing, and then ask the representative to explain any fees you don’t understand or don’t remember speaking about with him or her.
Know What to Ask
When you get a quote for the sale of your structured settlement or taxable annuity payments, make sure to ask whether there are any expenses that will be deducted from the quoted amount when your transaction is funded. If the answer is yes, find out what and how much. If the answer is no, carefully review your contract documents to verify that there are indeed no hidden fees.
Pick a Reputable Company
When you work with Strategic Capital, you can rest assured that all of our quotes include the legal fees required to get your transaction approved plus any and all fees charged by the life insurance company and our price is net to you. If there are additional non-routine costs — such as when independent professional advice is required or a guardian ad litem is required when a minor’s payments are being sold — we will advise you about why these costs are required and how they are to be paid.
Surprise fees by a buyer of structured settlement payments cannot only be annoying; they can throw off your carefully laid plan for your funds. You have a right to make an informed decision. Strategic Capital understands your need to have all of the information before you make a choice.
This blog post about a buyer of structured settlement payments was contributed by Cam Mears, Jr., Vice President, Strategic Capital. Cam has over 18 years of structured settlement and insurance claims experience. Prior to joining us, he served in structured settlement sales and management capacities at leading firms in the structured settlement industry, including Chartis Insurance (formerly AIG), Cambridge Galaher Settlements, and Crowe Paradis Services Corporation.
Cam is a CPA and he also earned his Certified Structured Settlement Consultant designation (CSSC) from the National Structured Settlement Trade Association (NSSTA) at the University of Notre Dame. He is also a former co-chair of both the NSSTA Marketing Committee and the NSSTA Technology Committee.