5 Tips for Selling Your Structured Settlement
By Jenny Sweeney
Consumers choose to sell their legal settlements (also referred to as structured settlements) for many reasons. While many sell their payments to help with college tuition, debt reduction, medical expenses or mortgage payments, most people sell their settlement to gain financial flexibility when personal or financial needs change. "The long payout periods of most structured settlements - typically up to 30 years - work well for many holders, but not all," said Andrew Torre, Chief Compliance Manager for J.G. Wentworth. "Many people find that they need access to their money now to pay for legitimate needs."
However, consumers often are unaware of their options when selling their structured settlements. What price is too low? Which company is reliable? Can I sell just part of my settlement? These are just some of the many questions that arise when considering selling your structured settlement. Torre recommends doing thorough research ahead of time. He offers these 5 tips to consider before selling a structured settlement:
1. Search for specialty finance companies that are able to purchase your structured settlement. Be sure to research their reputation and testimonials - what clients (past and current) say is invaluable.
2. Torre recommends not accepting the first offer to purchase your policy. Why? Browse multiple companies to make sure you're getting the most value for your settlement.
3. Evaluate your current financial standings, and then decide whether you need to sell all or part of your structured settlement.
4. If you can't understand the legal jargon, consult an attorney. Make sure you understand the documents and any tax ramifications that occur with liquidating your structured settlement.
5. Evaluate your financial obligations that will accrue in the future. Re-consider whether selling all or part of your structured settlement will be beneficial for you. Also, consider how accessing your assets will affect your income.
Bonus: Additionally, before you sell your structured settlement, be sure that the company you've chosen addresses all legal ramifications, Torre adds.
J.G. Wentworth is the nation's oldest, largest and most respected buyer of deferred payments for illiquid financial assets such as structured settlements, annuity payments and life insurance policies. Since 1992, J.G. Wentworth has purchased over $3 billion of future payment obligations. J.G. Wentworth is based in Bryn Mawr, PA. For more information about J.G. Wentworth, visit jgwentworth.com