The Structured Settlements Information That You Need: Selling Partial Payments

At Strategic, we give accurate structured settlements information, and we encourage you to sell only the amount of payments that you must. When considering selling your payments you may not have the structured settlements information that you need. For example, you may assume that you have to sell your entire settlement, that it is all or nothing. However, this is not true. In fact, it is far from the truth – at Strategic Capital we encourage you to sell only the portion of your payments that you must so that you can meet your current financial needs.
 
Structured Settlements Information : You have a Variety of Options

So, yes, you can sell just part of your payments, you do not have to sell them all. You can sell them in such a way that you receive no payments for some period of time and then begin receiving your payments again, or you can receive partial payments for a specified period of time – when you work with Strategic Capital we give you options so that you can decide what arrangement best fits your needs and goals. You also have the option of later selling more of your payments if a new financial need arises. This means that selling only part of your structured settlement payments gives you the most flexibility in planning your financial future and dealing with any bumps in your financial road.
 
Understand the Legal Requirements

When you decide to sell just part of your payments it is important that you make sure that the court and the insurance company acknowledge that you have only sold some of your payments. You must also make sure that you know exactly how you will get the payments that you did not sell, and whether these payments will be serviced by the original insurance company, by the buyer or by a servicing company.
 

The best outcome for you is for the insurance company to send the sold payments to the buyer and to send the unsold payments to you directly.

 
However, some insurance companies will not “split” the payments between you and the buyer, and so your payments may have to be serviced. In this situation, your best choice is to use a servicing company. If you have accurate structured settlements information, you know to never allow the full payment to be send to your buyer and trust them to send you your share – this is not a good arrangement for a variety of reasons.
 
Ensuring You Receive the Payments that You Don’t Sell

What it comes down to is that you can sell part of your payments and have this money be sent to the buyer. Then, your payments that you didn’t sell will be sent to you. This can happen in one of three ways, as touched on above. Following are the three most important bits of structured settlements information that you need:

  1.   The insurance company splits your payments, sending the part that you sold to your buyer and the part that you kept straight to you. This is your best option.
  2.  

  3. The insurance company that owns your annuity sends all of the payment to a servicing company. This company cashes that check, and then sends you your share and the rest to the buyer. This is the second best option. A good buyer, like Strategic Capital, will pay any applicable servicing fees.
  4. The buyer may offer to service the payments themselves, that is to have the insurance company send them the entire amount and then they will send you your share. There are many potential issues with this option and it is the one that you want to avoid. At Strategic Capital we always try to get the insurance company to service the payments. When that is not possible we hire a servicing company, at our expense.

Published : April 25, 2013

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