Structured Settlement Companies
When you sell your future payments through a reputable buyer like Fairfield Funding, you can get cash now instead of waiting years for each individual payment.
Get cash in as few as 5 Days!
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If you have received a structured settlement from an insurance company, it means that instead of receiving the entire amount awarded in a lawsuit, you receive tax-free payments each month for a specified period. While this can provide financial security over time, there may be times when you need access to your money sooner or want to invest in other opportunities.
➲ Why You Might Be Selling Structured Settlements
Here are some reasons why our past clients chose to sell their structured settlements:
- To pay off debt or medical bills
- To fund education expenses
- To invest in a business opportunity
- To purchase a home or car outright without taking on additional loans
The Best Structured Settlement Buyers
Structured settlement buyers are companies that buy structured settlements, annuity payments, and other future payments from individuals in exchange for a lump sum of cash. These companies operate in the secondary market and provide an alternative to waiting for long-term payouts.
We’ve compiled a list of the best-structured settlement buyers in 2023 based on reputation, customer satisfaction, competitive discount rates, and flexible buyout options. These companies can help you get the most value from selling your annuity payments.
Fairfield Funding is a leading buyer of structured settlements and annuity payments. We offer competitive rates, flexible payment options, and exceptional customer service. Fairfield Funding has been operating since 2008 and has helped thousands of people get the cash they need when they need it most.
In addition to our exceptional support, We offer the lowest discount rates in the secondary market, ensuring that you receive more money when cashing out your annuity.
Why Choose Fairfield Funding?
- Experience: With over 15 years of experience in the industry, Fairfield Funding has established itself as one of the most trusted names among buyers of structured settlements and annuity payments.
- Credibility: As an accredited member of both the Better Business Bureau (BBB) and the National Association of Settlement Purchasers (NASP), clients can trust that they are working with a reputable company that follows ethical business practices.
- Pricing: Fairfield Funding offers competitive pricing for its services while also providing personalized attention to each client’s unique situation. This means you get fair value for your assets without any hidden fees or charges along the way.
- Simplicity: Selling your structured settlement or annuity payment may seem complicated at first glance, but with help from professionals at Fairfield Funding, you will find it easy to navigate through every step involved in getting cash quickly without hassle!
2. DRB Capital
DRB Capital is another top player in the structured settlement industry. They specialize in buying structured settlements, lottery winnings, annuities, pre-settlement funding, and more. DRB Capital offers customized solutions to fit each client’s unique financial needs.
3. JG Wentworth
JG Wentworth also takes its place as one of the largest buyers of structured settlements in the United States. They have been operating since 1991 and have purchased over $7 billion worth of future payments from their clients. JG Wentworth offers competitive pricing as well as personalized attention to each client’s specific situation.
4. Peachtree Financial Solutions
Peachtree Financial Solutions specializes in purchasing annuities but also buys other types of future payments, such as lottery winnings or life insurance policies with death benefits payable over time instead of all at once after someone dies. They provide their clients with flexible payment options and a streamlined process for selling their payments.
Choose the Perfect Structured Settlement Buyer
If you have a structured settlement or annuity payment, selling them can provide immediate cash. However, it is important to choose the right buyer to ensure that you receive a fair deal and avoid scams.
➲ Things to Check When Choosing the Best Structured Settlement Buyer:
- Their Reputation: Research the company’s reputation by checking online reviews and ratings from previous clients. You can also check with organizations like Better Business Bureau (BBB) for any complaints filed against them.
- Their Experience in Buying Structured Settlements: Choose a buyer who has extensive experience in buying structured settlements. This will give you confidence that they know what they are doing and will offer you fair market value for your future payments.
- The Types of Future Payments They Buy: Some buyers only purchase specific types of future payments, such as those from personal injury cases or class action lawsuits. Make sure that the buyer purchases most of the types of future payments so you have more options available when selling your structured settlement or annuity payment.
- The Timeframe for Payment: Ask about their process timeline for completing transactions once an agreement is reached on terms. It should not take longer than several weeks before receiving payment after signing over rights to receive scheduled periodic payments.
- Licensing & Regulation: You need to confirm if your potential buyer has the proper licensing required by state law where they operate. This ensures compliance with industry regulations which helps protect consumers from fraudulent companies.
- Get Multiple Quotes: It’s always a good idea to get multiple quotes from different buyers. This will help you compare offers and choose the best deal for your needs.
- Compare Discount Rates: When selling your structured settlement or annuity payments, it’s crucial to compare the discount rates offered by different companies. A lower discount rate means that you’ll receive more money from the sale of your future payments. Comparing rates among top structured settlement buyers can help ensure that you’re getting the best possible deal.
Fairfield Funding is an experienced structured settlement buyer with a solid reputation in the industry. We buy structured settlements, annuity payments, lottery winnings, and other future payment streams at fair market value.
We have helped many people access their cash when they need it most, providing them with financial freedom and flexibility. Contact us today to learn more about how we can help you sell your structured settlement or annuity payment stream.
If you want to know more about the structured settlement industry or related topics like class action lawsuits and future payments, check out our blog section: Fairfield Funding Blog Section.
➲ Signs of Fake Settlement Buyers
If you are looking to sell your structured settlement or annuity payments, it is important to choose a reputable buyer. Unfortunately, there are some fake settlement buyers out there who may try to take advantage of you. Here are some signs that a settlement buyer may not be legitimate:
❌ No Physical Address
A legitimate structured settlement buyer will have a physical address where they conduct business. If the company only has a P.O. box or no address listed at all, this could be a red flag.
❌ Poor Online Reviews
Check online reviews for the company before doing business with them. If most of the reviews are negative and mention scams or unethical practices, it’s best to steer clear.
❌ Pushy Sales Tactics
A reputable structured settlement buyer will provide information about their services without pressuring you into making an immediate decision. Beware of companies that use high-pressure sales tactics and make promises that seem too good to be true.
❌ Lack of Transparency
The top and trustworthy structured settlement buyers will be transparent about their fees and processes from start to finish. If a company is vague about how it operates or refuses to answer questions about its fees upfront, this could indicate shady practices.
To avoid falling victim to fraudulent companies when selling your future payments on the secondary market, do your research beforehand by checking out resources like BBB.org, consulting with financial planners or lawyers familiar with these types of transactions, and getting quotes from several different potential buyers.
Discount Rate and Present Value
When you sell a structured settlement, the buyer gives you a lump sum in exchange for your remaining annuity payments. Buyers wouldn’t make money if they gave you the remaining annuity payments in full, so they applied a discount rate. You sacrifice some long-term income to receive cash immediately.
➲ What Is a Discount Rate?
A discount rate represents the time value of money and takes into account several factors, such as inflation, interest rates, and market conditions. Settlement buyers use this rate to less it from your estimated future payouts and calculate what they are willing to pay you for your future payments in a lump sum today.
The higher the discount rate used by a buyer, the lower their offer will be because they are factoring in more risk associated with purchasing those future payments. On the other hand, if a buyer uses a lower discount rate, their offer may be higher since there is less perceived risk involved.
➲ Annuity’s Present Value
The settlement buyers then apply this discount rate to your future annuity payments to determine the annuity’s present value using the following formula:
PMT x ((1 – (1 / (1 + r) ^ -n)) / r)
PMT equals the dollar value of each annuity payment (payment stream), “r” represents the discount rate, and “n” stands for the number of periods or remaining payments.
This means that as interest rates rise or fall over time, so too will your offer from potential buyers. It’s important to shop around and compare offers from different companies before making any decisions about selling your structured settlement or annuity payments.
➲ Court Fees and Other Costs
In addition to applying a discount rate based on expected future interest rates, buyers may also charge court fees and other costs associated with purchasing structured settlements or annuities. This means that even if two companies offer similar present values for your future payments based on their respective discount rates, one company may end up offering more overall due to lower additional fees.
Selling Your Structured Settlement: Understanding the Process
Selling your settlement annuity payments comes in three options:
1. The Full Sale Option
One option when selling your structured settlement is to opt for a full sale. This means that you’ll sell all of your future payments in exchange for one lump sum payment from the buyer. While this can provide immediate financial relief, keep in mind that the amount offered by buyers will likely be less than the total value of your future payments due to interest rates and fees.
2. Selling Partial Payments
If you don’t want to give up all of your future payments, another option is to sell only some of them while keeping others intact. For example, let’s say you have monthly payments scheduled over ten years but would prefer an upfront lump sum now instead; You could choose to sell two years’ worth of those monthly payments today and receive an immediate payout as well as resume receiving regular monthly installments after two years.
- Partial sales typically yield more money than full sales because they involve fewer overall payouts being sold.
- This type of transaction allows sellers flexibility with their finances without sacrificing long-term security entirely.
3. Selling Portions Of Each Payment
A third option available when selling structured settlements involves selling only portions or fractions rather than entire installments outrightly so that sellers get both quick access via lump sums at closing plus ongoing income streams every month thereafter based on how much was sold off initially (e.g., 50%).
- This option can be useful for those who want to keep receiving some regular income while still getting a lump sum of cash upfront.
- However, it’s important to note that the more portions sold off initially, the less money you will receive in future payments.
No matter which option you choose when selling your structured settlement or annuity payment, it’s essential to work with a reputable buyer like Fairfield Funding and consult with an attorney or financial advisor before making any decisions.
The Structured Settlement Protection Act (SSPA)
Congress enacted the SSPA to protect individuals who receive structured settlements from unscrupulous buyers. It requires court approval for any sale of future payments and sets out specific requirements that must be met before a transaction can be approved.
➲ Key Provisions of The Structured Settlement Protection Act
- Court Approval: Any transfer of structured settlement payment rights must be approved by a state court.
- Disclosure Requirements: All parties involved in the transaction must disclose certain information about themselves, including their identity, address, and relationship to the payee.
- Best Interest Test: Before approving a transfer request, the court must find that it is in the best interest of the payee based on several factors, such as financial situation and dependents’ needs.
➲ Why Was The SSPA Enacted?
Before its enactment, many individuals were taken advantage of by companies offering lump-sum payouts for future payments at steep discounts. These companies often used deceptive tactics to convince people to sell their settlements without fully understanding what they were giving up.
As a result, lawmakers passed this act which has made it harder for predatory companies to operate within the structured settlement industry today.
Make A Wise Decision!
Overall, understanding the structured settlement industry and evaluating top companies is crucial when considering selling your future payments. It’s important to prioritize responsive customer service, understand the differences between full and partial buyouts, and compare discount rates among top companies.
In 2023, some of the top structured settlement buyers include those with excellent customer support and low discount rates, quick processing times, and flexible payment options, as well as a specialization in complex cases with a high success rate.
If you’re looking for a reliable company that can help you sell your structured settlement or annuity payments at competitive rates while providing exceptional customer service throughout the process – look no further than Fairfield Funding!
Contact us today to learn more about how we can help you achieve financial freedom through our services!
Q. Is selling structured settlements objected to tax?
As per the Periodic Payment Settlement Act of 1982, selling settlement payments doesn’t involve US federal income tax. However, Selling a lottery annuity is subject to tax.
Q. Who Buys Structured Settlements?
There are now many companies that specialize in buying settlements from individuals. These companies are called factoring companies that offer lump sum payments to people who would otherwise have to wait for their future payments.