Selling Annuity Insurance Payments
Many times when people are in involved in personal injury or wrongful death cases, settlements with insurance companies are reached whereby they elect to receive a series of payments over a long period of time rather than an immediate lump sum. These payments normally total more than the amount a person would have received for a lump sum settlement. In order to make this election, the Plaintiff must sign a Settlement and Release Agreement that allows the Defendant to purchase an annuity policy to provide for the payments to the Annuitant.
Today, the plaintiff now has the right to sell these insurance payments to a third party if he or she so desires. These payments that flow from an insurance company according to specific terms of an annuity contract, may be exchanged at anytime in the future for a present day lump sum. Individuals decide to sell insurance payments for a variety of reasons. Perhaps the monthly payment is no longer an important part of the individual's overall income or maybe they just need a large sum to use toward expenses. Whatever the reason, the structured settlement is a personal financial asset that can be sold.
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You should be aware that selling insurance payments are restricted by certain legal guidelines. These guidelines must be followed in order to complete the transaction. A Transfer and Assignment Agreement will need to be executed with the seller following full disclosure of the price and other contractual terms. An experienced broker will help ensure these guidelines are met. Additionally, the sale is announced to all interested parties and then is submitted to the court for approval.
Due to the steps involved in the process, you should not expect the transaction to be completed for at least 90 days. In order to help facilitate the transaction process, participants need to respond timely to requested information. The broker you hire should be well versed in the industry, in order to help you receive the most for your money, and to insure that all guidelines are followed. Make sure that you find out exactly what the broker's credentials are, prior to hiring them. If they haven't been in the business long, use someone else.
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