Selling your structured settlement or annuity puts cash in your hands to use for your financial needs now. A structured settlement annuity is an arrangement for you to receive a series of payments over time, based on a schedule you determine. Once you sign the contract for your structured settlement, however, it cannot be changed. selling your payment stream can alter your annuity and help you get you the cash you need.

Selling part of your payment stream

You can sell only a portion of your annuity or structured settlement if you need some cash but do not want to give up your source of steady income. Selling a partial structured settlement or annuity enables you to receive as much cash as you need now, but you will keep the rest of your payment stream. The structured settlement company that purchased your payment stream will receive those payments in exchange for giving you a lump sum amount.


Selling your entire payment stream

You may need a significant amount of money to cover emergency expenses or to put toward eliminating debt or covering a large payment, like a house or a car. You can choose to sell your entire annuity or structured settlement to receive the maximum lump sum possible all at once. With this option, you will not receive any more tax-free periodic payments. Instead, you will receive the lump sum in exchange for those payments.


Receiving a lump sum in exchange for annuity payments

When you sell a structured settlement, you will not receive the full amount of the money invested in the annuity. The structured settlement purchaser determines how much you will receive for your payments based on how many you want to sell, how far away the payments are, and other fees that may be involved as well as other factors. You will receive a discount rate on your lump sum in order to receive it quickly, and a judge will rule to accept the deal (or not).


If you are in need of cash and selling your structured settlement or annuity, Novation Settlement Solutions can help you get started. Call 1-888-610-1849 or use our online form today.


*Novation is not a financial advisor and/or consultant and strongly recommends that you speak to a lawyer and/or accountant before making any significant financial decisions.