How to Sell a Structured Insurance Settlement
Selling a structured insurance settlement involves trading periodic payments made to you by an insurance company for a one-time, lump-sum payment. Although the premise sounds simple, many factors go into selling a structured insurance settlement. Thus, knowing how to sell a structured insurance settlement is important to obtain the best deal for your financial situation.
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.
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).
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.
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.
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.
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.
Source : wikihow.com