Partial Sale: The Structured Settlement Secret No One Told You
Did you know that in order to sell structured settlement payments, you don’t have to sell the whole policy? Far too many people with structured settlements assume that they’re locked into their current structure. Actually, though, you have options that can provide for your current needs while still providing for your future. By selling only a portion of your payments, you get flexibility and stability.
When we share this information, even with seasoned lawyers and settlement professionals, we often hear that this is the first time they’ve heard of this option. But we believe it shouldn’t be a secret. In fact, selling only a portion of a structured settlement is a core part of our approach to working with annuitants.
Selling some payments — and what that means for the annuitant
When people explore selling their structured settlement, it’s generally because they currently face hardship and need money to weather this storm. But storms pass. And when life normalizes, annuitants who have sold all of their payments now have money management and possible emotional issues to deal with.
To prevent that while helping people get the money they need, we often recommend a partial sale. This allows the annuitant to free up the cash required now while protecting a significant portion of their structured settlement, providing for their future.
For whatever reason, a partial sale still seems to be something of an industry secret. “I cannot tell you how many people call me after speaking with multiple other companies — and I’m the first one to suggest a partial sale,” Max Worth, Director at Strategic Capital, says.
It’s unfortunate, though, because life is continually in flux. After receiving a structured settlement, something unexpected might happen in the life of the annuitant. At that point, the settlement can’t provide for their needs without some adjustment. With a partial sale, the annuitant gets the help they need.
“Part of the educational presentation we provide is to explain how valuable we believe structured settlements are — what a great job they can do to provide customized, guaranteed future payments that lead to financial and emotional stability for annuitants,” Worth explains. With a partial sale, people can use their settlements in a way that works for their financial needs now and in the future.
A real-world example of a partial sale
We recently helped a young woman for whom a partial sale made all the difference.
This woman received a settlement from a burn injury as a child. Later in life, she was diagnosed with spina bifida. Eventually, she needed a custom wheelchair to get around.
At that point, her mother quit her job to be her daughter’s full-time caregiver and nurse. Together, they relied on a service to get to school, appointments, grocery shopping, and everywhere else that daily life demands.
Unfortunately, the service was consistently unreliable. It rarely arrived on time and even when it did, the service often failed to send a vehicle that could accommodate the customized wheelchair. Our team saw it firsthand. On the day of our court hearing, it was pouring rain. The service dropped them off at the wrong entrance to the courthouse and the mother and daughter walked into court 20 minutes late and soaking wet.
Fortunately, the option for a partial sale came to the rescue. This young woman sold only a portion of your payments. That provided enough liquid capital to buy a custom car that not only fit her wheelchair but also allowed her to drive. At the same time, we were able to preserve future payments to provide for her financial stability down the road.
Today, the young woman is enrolled in college and, thanks to her vehicle, is able to reliably attend classes. Because of the partial sale, this proactive, go-getter family now has independence.
It’s time for partial sales to stop being an industry secret. To learn more about selling some of your structured settlement payments to provide for today’s pressing needs, contact our team at Strategic Capital.