Sell Structured Settlement Payments Easily for Cash
Step 1: Get a Quote
Accept an Offer
To get cash for your structured settlement, you need to get a quote from a structured settlement buyer. Unlike most factoring companies that make you send paperwork just to give a quote, Factor Financial can give you an initial offer based on the information you provide — no documents needed upfront.
Step 2: Start Process of Getting Life Insurance *
* Only if Selling Life Contingent Payments
If you’re selling life contingent payments, then we’ll need to get life insurance policy. The first step is to request a quote from a life insurance agent. We’ll fill out a simple preliminary questionnaire with you that asks a few basic health questions and send it to the agent we work with. The agent will typically respond within 1 to 2 business days.
Step 3: Sign the Contract Package
Review Before Signing
Once you agree to an offer, Factor Financial will send you a complete contract package. A notary will meet you in person, and you’ll need a valid ID to sign. The contract will show the exact lump sum you’ll receive for selling your structured settlement payments. You’ll also sign an Affidavit explaining why you’re selling. Review everything carefully before signing to ensure the terms match the offer you discussed with your Factor Financial Account Executive.
Step 4: Independent Professional Advice *
* May Be Required
In most states, you can waive your right to get Independent Professional Advice (IPA). Some states, however, require you to seek advice from an accountant, attorney, or financial advisor before you can sell structured settlement payments.
Step 5: Petition Is Filed with the Court
Once Factor Financial has your signed contract package, your file is reviewed for accuracy. A local attorney will then file a Petition with the court in your county to approve the sale of your structured settlement payments.
Step 6: Notice of Hearing is Sent to All Parties
The annuity issuer and annuity owner receive a formal notice of hearing. They have 20 days to respond. Unless there is something wrong with the proposed transfer, such as the structured settlement payments being incorrect or not available, they won’t object.
Step 7: The Court Hearing
You’ll be notified of the time and place of the hearing. The judge may ask a few questions about your reason for selling, as stated in your Affidavit, or may simply ask: “Are you sure you want to sell your structured settlement payments?” Hearings usually last just a few minutes, and your attendance is required in most states. Our lawyer will meet you at the courthouse and guide you at the hearing.
Step 8: Funding
The Best Part!
Your money will be sent via wire transfer once we receive the court order approving the sale of your structured settlement payments and the annuity issuer acknowledges the order or a Stipulation has been signed by all parties
Sell Structured Settlement Payments FAQ
Answers to Common Questions
You’ll need the following documents to sell your structured settlement payments. We’d be happy to help you get them if needed:
- Annuity Contract and current Benefits Letter
- Bankruptcy Discharge *
- Child Support Payoff *
- Divorce Decree *
- Driver’s License or State ID
- Release & Settlement Agreement (we can help you get it)
- Social Security Card
* If applicable
The process to sell structured settlement payments usually takes 45–75 days (60 days on average). Timing depends on your county or jurisdiction and whether your structured settlement payments are guaranteed or life contingent.
If your structured settlement payments are large enough, you can sell just a portion. Very small annuities may need to be sold in full because of legal costs.
Absolutely! We specialize in buying life contingent structured settlement payments. While we can’t guarantee you’ll qualify for life insurance, we know how to handle each case and will work with you from day one. You can also check out our dedicated page on life contingent payments.
Life contingent structured settlement payments are bought at higher discount rates because they are only paid during the annuitant’s lifetime. The need for a life insurance policy to secure the transaction increases the buyer’s risk.
Usually, yes, though a few states may not require your physical appearance. In those cases, your Affidavit helps the judge decide if the transaction is in your best interest. You should still be willing and prepared to attend the hearing. Most hearings are simple and only last a few minutes.
The majority of petitions are approved. The court will ensure the transfer is in your best interest. Denials are rare and usually happen if:
- Even with a fair rate, some judges may feel the rate is too high. Not all judges are familiar with the Time Value of Money.
- The annuitant doesn’t have any other source of income.
- The judge may feel the reasons for selling structured settlement payments are weak.
Discount rates can range from single digits in ideal situations — such as guaranteed structured settlement payments that are current or start soon and are backed by a highly rated issuer — to high teens in higher-risk scenarios. Higher rates are applied to life contingent payments, payments that start far in the future, or payments backed by lower-rated issuers.
We prefer to wire your funds directly into your bank account. You’ll fill out a Funding Instructions form that will be notarized. We don’t send funds to a third party.
