When Is Selling My Structured Settlement a Good Idea?


Were you granted a structured settlement that you want to sell but are unsure if it’s in your best interest to do so? Would the amount you’d earn by selling your structured settlement make doing so a wise financial decision? When is it a good idea to sell your structured settlement?

These are all questions that many others have asked, and we want to help you sort through all the chatter so you can make the best decision, for you.

You might be saying: I just want the facts about selling my structured settlement. If that’s you, read on!

What are the Facts About Selling My Structured Settlement?

There is a lot of noise out there on both sides of this issue: sell your structured settlement and get a big cash payout, soon, some say. While others are telling you: selling your structured settlement will always mean a loss and will, therefore, always be a bad idea.

Who do you trust?

Some facts to consider:

  • There are state and federal regulations concerning the sale of structured settlements
  • The state regulations outrank the federal regulations
  • In every case, the sale of structured settlements must be approved by a judge
  • To get your sale approved, you must be able to show what has changed, since the settlement was granted, which necessitates its sale
  • In the long run, you will sacrifice a portion of your total settlement amount for the benefit of the lump sum payout

While these facts hold true, across the board, how they affect you, is a very individual question.

What Do Those Facts Mean For Me?

You can research your state’s particular regulations on this page.

Some legitimate reasons to sell include costs for medical treatment, a change in living expenses (like college tuition), and mounting or overwhelming debt.

Ultimately, you will have to answer, first for yourself and then for the judge, exactly why it’s important that you have a lump sum payout. While it’s true that you will sacrifice a portion of your total settlement for the benefit of a lump sum, it is possible to evaluate whether that discount rate is worth it, for you.

One great way to start is to consult a structured settlement calculator to get an estimate of your potential discount rate.

Once you have that and have estimated the discount rate (typically between 9 and 20 percent of the total settlement), you will want to consult a trusted attorney or financial advisor to determine if that discount rate makes selling sense, in your particular financial situation.

What Are My Next Steps?

If you come to the conclusion, with the help of your advisor, that you do want to sell your structured settlement, then your next step is to find the company that is willing to out-spend the competition!

After all, if you do choose the sell structured settlement option, you want to retain the largest percentage of your original settlement possible, right? You also want to be sure that you choose a buyer that is willing to give you all the information you need to have before you decide to sell.

Sum-ming Up

If, after evaluating, with the help of your advisor, the potential discount rate, putting together your argument for the judge, and finding the company that you want to go with, you’ve determined: “Selling my structured settlement is the best option,” you can sell and move on with the peace of mind that you’ve made the best decision, for you.