When an insurance company or another party has agreed to pay an award amount from a lawsuit in the form of a structured settlement, you can expect to receive a series of structured settlement payments over the course of five, ten, twenty years or more, or even over your entire lifetime. Structured settlement payments are designed to pay you an award that is owed to you, plus interest in the form of installment payments and can serve as a steady source of income for many. However, some people decide that they want to cash out their settlement payments before the entire agreement term has run its course. In this case, the individual receiving payments may be able to get cash for structured settlement payments by selling their settlement to a third-party financial company.

Selling Settlement Payments

If you are interested in selling structured settlement payments, you will need to make sure that the sale can be approved under state and Federal laws. Every state has different laws and limitations in regards to the sale of structured settlements, and you will need to get a judge's approval before you can cash out your payments and avoid any type of tax penalty. If you proceed without a judge's approval, you may still be able to make the sale but you will be responsible for paying taxes on the sale amount.

Selling structured settlement payments is a fairly easy process and you may choose to sell only some of the payments instead of the entire award amount. You'll find several different companies that buy structured settlements for cash. It's important to remember that these companies will charge a fee for their service and will only pay a percentage of the value of the structured settlement payment amount. It's up to you to make the decision on whether this is the right choice for you. Most people proceed with this type of sale when they need cash quickly and don't want to wait for their payments to come on schedule any longer.

Getting Cash for Structured Settlement Payments

When you are interested in getting cash for structured settlement payments, it's generally a good idea to do some research on the company you are interested in working with and make sure they have a strong track record. Structured settlement buyers need to be licensed, insured and bonded, and should be able to provide some testimonials or information about how the sales process works. You will be able to get a free quote from different buyers, and provide them with personal information such as the insurance company you are working with, the types of and value of the structured settlement payments you are receiving, and your state of residence.

Most companies who are willing to pay cash for structured settlement payments are willing to extend a free quote and will break down exactly how much you would receive after fees have been taken out of the transaction. Don't be afraid to shop around so that you are getting the best deal on the sale. You won't be able to finalize the sale until an official contract is signed. This contract needs to contain all of the terms and conditions for the transaction. In most cases, it can take up to 90 days or more from the time of the court order process to the disbursement of funds from the buyer.