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Sell Structured Settlement Annuity Payments - The Process

Get a Quote to Sell Structured Settlement Annuity Payments

The first step toward getting money is to learn how to sell structured settlement annuity payments. Contact a factoring company and request a quote to sell structured settlement annuity payments. Many places will make you send documents to them proving that you have a structured settlement annuity before they will quote you. If you contact an Account Manager at Factor Financial, they won’t force you to send anything in order to receive a quote.

Get a Good Discount Rate (Interest Rate)

We specialize in providing the best offers for our clients on structured settlement annuity payments including life contingent annuity payments. The amount you’ll receive is based upon the discount rate the company charges you and the dates and amounts of your payments. This rate can be anywhere from 7-25% so it’s good to check around. The lower the rate the more money you’ll receive. The difference in rates could mean thousands of dollars to you. Don’t let this overwhelm you. Be smart and learn how to sell structured settlement annuity payments. If you want to sell structured settlement annuity payments make sure you’re getting a good discount rate first.

Understand the Court Ordered Process to Sell Structured Settlement Annuity Payments

It’s important that you understand that the court-ordered process takes on average 60 days or so to complete depending on the state. Some states are quicker than others. It could even take up to three months and in rare cases longer. Don’t be fooled by anyone offering “cash now”. If you’re receiving annuity payments as a result of a structured settlement then a court order will be required. On January 3rd, 2002 Congress passed H.R.2884 – Victims of Terrorism Tax Relief Act of 2001. Section 5891 of the Act titled STRUCTURED SETTLEMENT FACTORING TRANSACTIONS outlines the need for a qualified court order if the factoring company seeks exemption from a 40% excise tax on the transfer. Although you may be the designated “payee” most structured settlement payment recipients don’t own their annuity. It’s usually owned by a similar entity to the one that issues their checks. If you’re curious as to who owns your annuity read your original Release and Settlement Agreement (sometimes referred to as Settlement and Release Agreement or simply Settlement Agreement). Insurance companies sometimes merge and/or change names so the current owner may not be the same exact name as what was originally written in the release and settlement agreement.

Sign Contract to Sell Structured Settlement Annuity Payments in Exchange for Cash

Once you agree to the offer presented to you, state disclosures and a contract package will be sent to you or the notary that will execute the signing. Make sure to have your driver’s license or state ID to present to the notary on the day of the signing. The contract will indicate the amount of money you’ll receive in a lump sum in exchange for assigning (selling) your right to receive certain structured settlement annuity payments. You’ll also sign an affidavit which will include the reasons you want to sell structured settlement annuity payments.

Make sure the contract and disclosure statements represent the terms you understood over the phone

The judge, typically in the county you reside in, will review the proposed transaction to find if it’s in your best interest. It’s advisable that you consult with an accountant, attorney and/or financial advisor before signing the contract just to make sure you understand all the terms. If you learned how to sell structured settlement annuity payments prior to entering into the transaction, then you shouldn’t have any surprises. Just make sure you READ the state disclosures and the contract. Never take a salesperson’s word over the telephone over what is in front of you in writing. Make sure everything you agreed to over the phone is in writing including any legal fees or processing fees that the factoring company may charge you.

Factor Financial Never Charges Legal or Processing Fees

The purchase price you understood over the phone is EXACTLY what you'll receive when you are funded unless we provided you with an interest free cash advance. Only the amount you were advanced would be deducted at closing. You will see that in our disclosures and contract package.

Send Structured Settlement Annuity Documents and More to the Factoring Company

  • Annuity Contract or Benefits Letter: At this point you’ll need to fax, email or mail in a copy of your annuity contract if you haven’t done so already. As mentioned previously, many companies will ask for this before offering you a quote. In any event, you’ll need to show the factoring company a copy of the annuity contract or at the very least a current “Benefits Letter” from the insurance company that clearly describes the annuity payments you’re entitled to with the dates and amounts of the payments listed.

  • Bankruptcy: If you’ve recently filed bankruptcy, you’ll need to send in a document showing that the bankruptcy has been discharged. If it is still active, then you’ll need to get permission to sell structured settlement annuity payments from the trustee in charge of your bankruptcy proceeding.

  • Child Support: If you currently owe past due child support, you’ll need to provide a payoff to the factoring company. Proceeds from transaction will be used to pay past due child support.

  • Divorce Decree: If you’ve ever been divorced then a divorce decree will need to be sent as well. This is needed to prove that your ex-spouse has no rights to your annuity payments and to show you have every right to sell structured settlement annuity payments.

  • Identification: At some point you’ll need to send in a copy of your driver’s license or state ID and your Social Security card.

  • Release and Settlement Agreement: At some point you’ll need to fax, email or mail in a copy of your Release and Settlement Agreement. If all good faith efforts have been made to locate it but it cannot be found, then the factoring company may have you sign an “Affidavit in Lieu of Release and Settlement Agreement”.


Factor Financial is glad to help if you have trouble locating any of the aforementioned documents. We can start by conducting a 3-way conference call with your annuity issuer and request that they send a copy of the annuity contract and any accompanying documents such as the release and settlement and a current benefits letter. This will get the ball rolling quickly.

Petition to Sell Structured Settlement Annuity Payments is Filed

Once the signed contract has been received by the factoring company it is reviewed for accuracy and a file is created. Checks will be done to make sure you have no open bankruptcies, past due child support or taxes due to the government. If you have any of the aforementioned issues, they will need to be paid off from the funding proceeds. Your file will then typically be sent to a local attorney who will submit a petition to the appropriate court in your area. Usually, the petition will be filed in the county courthouse where you live.

A Notice of Hearing Will Be Sent to the Annuity Issuer and the Annuity Owner

Notices are sent to the issuer and owner of your annuity informing them of the upcoming hearing. They have 20 days to respond to the notice or object if anything seems out of place. As long as everything is correct, and the annuity payments are indeed available they usually won’t object to anyone wishing to sell structured settlement annuity payments. At this point we wait until the court provides us with a hearing date.

Hearing to Sell Structured Settlement Annuity Payments is Conducted

You will be notified as to the time and place of the hearing. Your attendance is required in most states. Make sure you’re dressed appropriately for court and arrive on time. Typically, the hearing only lasts a few minutes. The judge may ask you and or the Attorney one or two questions and then render a decision. The judge may ask quite simply “Are you sure you want to sell structured settlement annuity payments?”

Can the Judge Deny the Transaction?

Most applications are approved; however, denials do happen. Most denials are based on the judge’s opinion that the transfer is not in the annuitant’s best interest. He or she may feel that the discount rate being charged is too high or may not believe the reasons listed in the affidavit are adequate enough. He or she may feel that the annuitant is too young to handle a large lump sum payout and may be concerned that if approved, the annuitant will blow the money. Occasionally, he or she may ask for more information and issue a continuance. For all the aforementioned reasons it’s important to learn how to sell structured settlement annuity payments. If you go to the hearing well prepared, you should have nothing to worry about. Statistically speaking, most petitions to sell annuity payments are approved.

Funding the Structured Settlement Annuity Sale

Here is the best part. You will be funded after the hearing takes place assuming that the judge grants the court order approving the transfer. It could take a short while before you actually receive your money. Most factoring companies will want an “Acknowledgment Letter” from the annuity issuer indicating that they are in receipt of and will comply with the court order. Some annuity issuers or annuity owners will require a stipulation (agreement) be set in place between all parties. This will typically be prepared before the hearing. If a stipulation has been executed by all parties, then an acknowledgment letter isn’t necessary. Most factoring companies will wire the money directly into your bank account although you may request a check.

We’d Love to Hear from You

Please call Factor Financial if you’d like to get a quote to sell structured settlement annuity payments at +1 (781) 242-4000.

Our friendly Account Managers will make you feel at ease and answer any questions you have. Even if you decide not to sell, we hope we can help you learn how to sell structured settlement annuity payments without hassle. If preferred, you may fill out our online quote request from on the right to sell structured settlement annuity payments.

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