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When it comes to asking “should I sell my annuity”, one of the most important things to consider before you sell structured settlement payments is how much the sale will cost you. You need to think about a variety of things as you get quotes and choose which payments to sell.
A great way to learn about selling your settlement is to look at the experiences of others. There was one actual court case where one man was denied selling their structured settlement payments. Rahman was denied because the discount rate he was quoted, 17.8%, was deemed too high. But when we asked questions of other companies we learned that some companies would have offered a much lower rate of 10.9%, netting Rahman nearly $8,000 more and perhaps getting his sale approved. We can’t help but wonder if Rahman received numerous quotes for comparison. Probably not.
Now, we have said that getting a quote is important before you sell your structured settlements annuities. And if you search the internet you will find dozens of websites offering to give you a free quote online if you just fill in a few numbers. Well, our clients have talked to many other companies and they tell us that not one was willing to provide a discount rate over email or as a result of their “online quote” submissions. In fact, some companies want extensive information, including the name of the annuity company that made the payments and the exact details of all payments before they will answer any of your questions. So it may be difficult for you to get a “ballpark” quote when you want to sell structured settlement payments, though Strategic Capital is happy to answer your questions, to the best of our ability, by phone or email, even early in your thinking process.
For the most part, when you call for a quote on selling your structured settlements annuities you need to be prepared.
You should have your original settlement paperwork with you. You should know exactly how much your payments are, who sends them, how many you have left, and when you received your last payment.
Like anything else in life it pays to be informed. Get quotes from two or three companies before you make a decision. When you get a quote do tell companies that you are getting multiple quotes, but do not tell them how much you have been quoted – you will get a better offer if you keep your other quotes anonymous. But remember to consider the amount of money as well as the service that you will receive when making your final decision.
Another question that you will be asked when you call a structured settlements buyer is which payments you wish to sell. Now, you should know by now that payments which extend further into the future are worth less than payments that are sooner – next month’s payment is worth a lot more than the same payment in 10 years. So, which payments do you sell?
It depends upon your situation. And the best place to sell structured settlement buyers can help you to decide.
If you sell your earlier payments – those coming to you sooner – you will get more money for those payments. However, this will impact your cash flow now, when you may really need money. If you sell payments that are further into the future, say five, ten, fifteen years or more, you don’t impact your cash flow now, but you will net less money for each payment. And, you are sacrificing money in the future, a time when you don’t know what your life will be like.
Some people have settlements that provide them with a lump sum at certain intervals. This leaves them wondering if they should sell the lump or the payments. Again, it is a personal decision based on whether you need that regular income stream or whether you more rely on the occasional lump sums.
Before you sell structured settlement payments you must evaluate your individual needs. Strategic Capital, the best place to sell structured settlement payments, can help.