|
Selling a Structured Settlement |
|
Selling your structured settlement can be relatively painless if you are informed and knowledgeable about your financial options. MyNoteMarket has collected information about the structured settlement process and resources to help you research your options. Use the Education links below to quickly understand: Once you have gone through the Education section, use the additional Resources to research potential buyers, review current news and blogs, and get links to tax and legal sites. |
|
|
How To Sell a Structured Settlement |
 |
 |
 |
|
1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or lawyer. Remember, you can sell all or just a portion of your future cash payments. 2) Contact your payment provider, usually an insurance company, to determine the amount, number payments remaining , and terms of your structured settlement. It is a good idea to get all contract information from your provider. You will need this information to give to the potential buyer. *Ask your payment provider if they have worked with structured settlement buyers, they might disclose a few potential buyers to begin your search. 3) Determine what amount you would like to sell. You will receive more money for payments that will be received sooner than payments in the distant future. Please see "How Structured Settlements are Priced" to understand cash flow pricing and discounting. 4) Search for a buyer of structured settlements. It is very important to feel comfortable with potential a buyer. Please see "Due Diligence" for tips on selecting a buyer. There are a number of ways to find a potential buyer: - talk to your financial advisor or lawyer,
- use this site to identify potential buyers,
- search the Internet,
- talk to friends and family who have sold a structured settlement.
|
|
Read more...
|
|
Structured Settlement Terminology |
|
|
|
|
Here is some basic terminology for structured settlements: Annuity - A financial product usually sold by insurance companies or other financial institutions to provide financial planning and/or savings. In a structured settlement, an annuity is used to make payments over a specific period of time. Annuities are regulated by several professional and governmental organizations. For more info see: Annuity - Wikipedia Best Interest standard- The standard applicable to transfers of structured settlement payment rights based on judicial findings regarding the payee and his dependents. For more info see: Structured Settlement Factoring Transaction- Wikipedia Discount Rate - Is the rate at which future payments are discounted to calculate a present value in terms of today's dollars. For more info see: Structured Settlement Factoring Transaction- Wikipedia Discounted Present Value - Is the amount in today's dollars of future cash flow payments. The amount is calculated by using the Discount Rate to estimate a present value amount. The lower the Discount Rate, the more you will receive for future payments. For more info see: Structured Settlement Factoring Transaction- Wikipedia |
|
Read more...
|
|
|
How Structured Settlements are Priced |
|
|
|
|
Structured settlements are priced by discounting future payments by a discount rate. This discount rate can vary widely from 9% to 18% depending on the buyer. The lower the discount rate, the more you should receive for your structured settlement. Also, the further out a payment is, the more it will be discounted. Meaning you will receive less cash now as the time to receive future payments increases. Check out these links for more information: |
|
Due Diligence - Structured Settlements |
|
|
|
|
There are numerous potential buyers for your structured settlement, it is hard to choose the right one. But with a little due diligence(research), you can select several that are reputable and right for you. One important point you should be aware is whether you are dealing with a principal or broker. If you a dealing with a principal, you may get better pricing due to the absence of the broker fee. Most principals use brokers to bring them business but there is a definite cost associated with this added layer of service. But brokers can be valuable in finding multiple buyers and could potentially get better pricing even after factoring in their fee. Here is a guide to help you choose the right buyer: - How long have they been in business?
- Is their contact and business information verifiable?
- Are they bonded or insured?
- What is their underwriting criteria?
- How is their Better Business Bureau rating?
- Do they handle your type of structured settlement?
- How many structured settlement purchases do they do a year?
- Are they familiar with your local courts and state practices?
- How will they price your structured settlement?
- What discount rate did they use in the quote?
- Can they provide a time table for the process?
- Do they use multiple financing sources for your quote?
- Are they a principal or a broker?
- Are they associated or member of a larger corporation?
- Do they have a privacy policy?
- Are they members of trade and professional organizations?
- Are they professional in all communications and business presence?
|
|
|
|
|
|
Structured Settlements
