When looking for information on the structured settlement industry, there can be an overwhelming amount of information to sift through to find what you are looking for in making a good decision. In order to help simplify the research process, we have put together an overview or what we like to call a Mainstreet Funding review of the key aspects of selling structured settlement payments.
Can I Sell My Structured Settlement?
The answer is generally yes, however there are some minor limitations you need to know. Most lawsuits in which the settlement was structured over time falls into what is called the structured settlement protection act. This act sets forth the rules for selling your structured settlement payments. Most lawsuits qualify to be sold.
One type of lawsuit that may not be able to be sold is a lawsuit relating to an on-the-job injury or workers compensation. For example, let’s say you were working for a company and you fell on the job. You may choose to sue the employer under workers compensation and your settlement pays you $500 month for 10 years. That settlement would not qualify to be sold.
Do I Have to Sell all my Payments?
No, you can sell any portion of your annuity or structured settlement that makes sense to you. For example, you are receiving $1,000 per month for the next 20 years and 2 lump sums of $50,000 due 1/1/2018 and 1/1/2023. You may want to sell only $300.00 per month of the monthly payment and $10,000 of each of the lump sum. This type of split is definitely an option for you. Matter of fact, your options are almost limitless. You can sell any portion of your structured settlement that makes sense to you. Our structured settlement specialists are trained and have the experience to help support you in determining the best option for selling your structured settlement payments. We want you to keep as much of your structured settlement annuity as possible while solving the current financial need.
Why Won’t I Receive What the Payments Add up to Over time?
That is a very good and common question that we receive. Generally speaking, money is worth more the sooner it is due and paid. When you settled the lawsuit, I think we could agree that you would have been better off if the insurance company had just gave you all the money upfront. If they did pay you upfront, you would not need to sell and the money could have been used as you saw fit. However, the insurance company structured your settlement for at least one important reason which is that they don’t need to pay out what it adds up to over time. They know that if they can defer the payment made to you, it costs them less to settle your case. The insurance company will purchase an annuity for a fraction of what it adds up to over time. The annuity gains interest over time to make the payments. When you choose to sell your payments to Mainstreet, Mainstreet must wait for the payments like you would have waited. We give you the present value of those future payments. Here are a couple examples to help illustrate the present value:
- Twenty years ago, you could purchase a new Honda Accord for around $12,000-$15,000, but now they are over $30,000.
- Consider your future saving. If you want to have $300,000 for retirement in 20 or 30 years, you wouldn’t need to put $300,000 away now. You would put a much smaller amount away now and it should grow to be the number you want at retirement.
- Let’s say you buy a house now for $100,000 today. By the time you pay off the mortgage on that house in 30 years you more than likely would have paid 3 times the purchase price back to the mortgage company.
- Credit cards – We all use them and know them, but let’s consider an example. Life changes and you have to put a lot of money ($10,000) on your credit card. At the average rate for a cash back credit card paying the minimum payment it would take roughly 18 years to pay off the credit card (assuming not using the card any longer). You would pay back a total of roughly $18,100.
How do I Get Started
Please fill out the form to the right or you contact one of our structured settlement specialist at 1-877-919-8003. We are happy to help you explore all your option and get you money you need easily and fast.