Marketing a structured insurance settlement involves trading periodic payments built to you by an insurance company for a one-time, lump-sum payment. Although the actual premise sounds simple, many factors begin selling a structured insurance settlement. Thus, knowing how to sell a structured insurance settlement is important to obtain the best deal for your budget.
Step 1
Know the current cash value of your structured insurance settlement.
You have 2 options to calculate its present value.
- Contact a financial adviser. The adviser calculates the amount of inflation from the date you're meeting with him or her to the time that the settlement is paid off.
- You can use a current value calculator found online at websites. Input the requested information to find out the current value.
Step 2
Choose a list of companies to which you want to sell the structured insurance settlement.
You should narrow the list down to 3 or 4 companies.
- Investigate different companies that buy structured insurance settlements.
- Look for reputable companies that specialize in buying structured settlements. You can search for them online, consult your financial adviser or ask friends.
- Eliminate any companies that don't have a good rating with business organizations such as the Better Business Bureau (BBB).
Step 3
Obtain several quotes from the companies remaining on your list.
You have 2 options.
- You can choose to complete the companies' online forms to receive quotes.
- You can call the customer service representatives from each company to receive quotes.
Step 4
Select the best quote.
- Choose the quote based on your financial needs, value of the return and price.
- Tell the company that you want to move forward with selling your structured insurance settlement. Once the company receives the go-ahead, it sends you a contract.
Step 5
Consult with a lawyer.
- Talk with a lawyer specializing in structured settlements about the quote.
- Go over the agreement to make sure the contract is properly worded.
- See if there are any tax consequences, such as the creation of tax liabilities, when you accept the settlement.
Step 6
Accept the offer.
- Sign the contract to sell your structured insurance settlement.
- Return it to the company.
- You will receive a check once the contract is approved.
Tips
Attaining quotes from several structured insurance settlement companies allows you to compare each quote without making a commitment to any company. Also, it allows you to pick the best deal based on price.
Warnings
The company buying the structured insurance settlement won't pay the entire amount offered to you. Often, a portion of the offer includes an agent's commission.
The approval process may include a petition being filed with your local court. The petition informs the court that the structured insurance settlement is being sold.
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