How Do Structured Settlement Buyouts Work? | Cox Financial

How Do Structured Settlement Buyouts Work?

Structured Settlement BuyoutIf you have a structured settlement or annuity from a lawsuit, then you have the right to sell your future payments in exchange for a lump sum of cash.

And depending on the state where you reside, the laws governing the process of selling your payments will slightly differ.

For information on the structured settlement laws in your state, you can check out the state laws at

In a nutshell, the process of selling your structured settlement or annuity can seem complicated, but it’s really simple.

First, you’ll want to contact a company who’s in the business of purchasing structured settlements to let them know that you’re interested in selling your future payments in exchange for a lump sum.  That company will ask you to provide them with details of the future payments you’re entitled to receive so that they can provide you with a quote on how much they can offer you in exchange for your payments.

They will also ask what insurance company is responsible for making those future payments to you.  They will confirm the exact payment amounts and dates of your guaranteed payments.

If you agree to the lump sum that the purchasing company has offered, the purchasing company will send you a contract for you to sign and have notarized.  Depending on the state where you reside, there may be a waiting period from the date that you receive your contract until the date that you can actually sign and notarize your contract.

After your contract and has been signed and returned, the purchasing company will file a court petition on your behalf which get you a court date.  Every person interested in selling their structured settlement in exchange for a lump sum of cash will have to get their deal approved by a judge in a court of law.

During the court hearing, details of your deal will be heard and a judge will have to agree that the reasons provided by you for receiving a lump sum is in your best interest.

If the judge agrees with the transaction, he will approve the deal and the closing process starts.  After approval, the judge will sign off on a court order, allowing the transfer, and the closing process begins.

After the closing process, you will have the funds wired directly into your bank account.

The whole process of getting a lump sum of cash from your structured settlement can take 45 – 90 days.