Sell Structured Insurance Settlements

sell structured insurance

✅ What is a Structured Settlement?

A structured settlement is a financial agreement in which an insurance company pays a claimant in periodic payments (monthly, annually, etc.) instead of one lump sum.

🎯 Who Sells Structured Settlements?

• People who need immediate cash (for emergencies, debt, investment, etc.)

• Individuals with long-term annuities from legal settlements

💼 How to Sell a Structured Settlement (Step-by-Step)

1. Understand Legal Restrictions

• Not all structured settlements are sellable.

• Some are protected by law (e.g., workers’ compensation settlements).

• You must receive court approval for the sale.

2. Get a Valuation

• Contact structured settlement buyers (also known as factoring companies) to receive a cash offer.

• Common buyers: JG Wentworth, Peachtree, Fairfield Funding, etc.

3. Compare Offers

• Don’t accept the first quote. Compare discount rates (how much they’re reducing the future value).

• The lower the discount rate, the more cash you’ll receive.

4. Hire a Lawyer (Optional but Recommended)

• A lawyer helps ensure you’re not taken advantage of.

• They’ll help present your case to a judge.

5. Court Approval

• A judge must confirm that the sale is in your best interest.

• Factors: your financial needs, dependents, health, etc. sell structured insurance

6. Receive the Lump Sum

• After approval, funds are usually wired within 3–10 business days.

💰 Example of a Sale

📉 Cons of Selling a Structured Settlement

• You lose future income security

• You get less than total value (due to discounting)

• Possible tax implications (though rare if settlement is tax-free)

📌 Tips for Selling

• Only sell what you need, not the full amount

• Always ask for the effective discount rate

• Use multiple quotes to negotiate

• Consider selling partial payments (e.g., next 5 years only)

📈 Interested in Building a Business Around This?

If you’re looking to broker or invest in structured settlement purchases:

• You’ll need licensing depending on your state. sell structured insurance

• Focus on compliance, underwriting, and cash flow modeling

• Many firms make profits by offering 9–12% discounted value and waiting out the payments

🧠 What Are Structured Settlements (Deep Dive)?

Structured settlements arise from:

• Personal injury lawsuits

• Medical malpractice claims

• Workers’ compensation

• Wrongful death suits

The recipient agrees to receive guaranteed payments over time, funded by an annuity (usually through a large insurance company). Many recipients later wish to cash out early due to financial emergencies. sell structured insurance

💸 Why Do People Sell Them?

People typically sell their structured settlements to:

• Pay off high-interest debt

• Fund a business

• Cover medical or legal expenses

• Buy a home or car

• Escape long-term cash flow constraints. sell structured insurance

sell structured insurance

🧑‍💼 Business Opportunity: How to Profit

If you’re looking to start or scale a business around this, there are two common models:

1. Factoring Company (Direct Buyer)

• You buy structured settlement rights at a discount and wait for payments. sell structured insurance

• You earn the difference between what you paid and what’s received.

• You may need millions in working capital, or can raise funds from investors.

2. Broker/Marketplace Model

• Act as a middleman connecting sellers with buyers.

• You earn a commission or fee (typically 1–5% of the lump sum payout).

• Easier to start and scale with less capital. sell structured insurance

⚖️ Legal & Regulatory Requirements

• Court Approval: Every sale must go through a state court, ensuring it’s in the “seller’s best interest.”

• State Laws: Each U.S. state has different structured settlement protection acts (SSPAs).

• Disclosure Laws: Buyers must disclose the effective discount rate and fees clearly.

• Licensing: Some states require licenses to operate as a buyer or broker.

Pro Tip: Work with attorneys who specialize in court approvals and compliance. sell structured insurance.

📊 Key Metrics and Terms

📣 Marketing Strategy to Find Sellers

Organic

• YouTube/SEO content like “Should I sell my structured settlement?” or “How to get fast cash from lawsuit payments”

• Google Ads targeting keywords:

  • “Sell structured settlement for cash”

  • “Need money from annuity”

  • “Lump sum for lawsuit payment”. sell structured insurance

Paid Ads

• Run Facebook lead ads targeting interests like:

  • Lawsuit financing

  • Personal injury

  • Debt relief

• Use retargeting to follow up with high-intent users. sell structured insurance

Referral Partnerships

• Partner with personal injury attorneys, financial advisors, and credit counselors

🧾 Sample Pitch Script for Sellers

“Hi [Name], I understand you receive monthly settlement payments, but sometimes life doesn’t follow a schedule. Whether you need money for an emergency, paying off debt, or just want more control over your finances, we help people access a lump sum today. The process is legal, court-approved, and tailored to your needs. Would you like a free quote?”

📍 Sample Website Structure (for Brokers or Buyers)