Sell Structured Insurance Settlement

Sell Structured Insurance Settlement

If you have a Structured Insurance Settlement and are receiving future payments you can convert those payments into cash.

A question we hear is how do insurance companies factor into the structured settlement business. This is a good question as insurance companies are integral in these transactions in multiple ways.

The first way insurance companies are involved in settlements is when there is a lawsuit. As an example, if someone is injured in a car accident and they decide to sue the person who was the driver of the car that hit them, it is an insurance company they are really suing. One of the primary reasons for drivers to carry auto insurance is for protection in an accident that can include liability. If the injured party is calming the other driver is at fault and should pay a cash award it is the insurance company that would make this payment. So the lawsuit is really between the injured party and an insurance company.

The insurance company can offer the injured party a cash settlement to dismiss the case. If this occurs and the inured party is given the option to take a structured settlement then insurance companies are involved for a second time. In this instance if the injured party accepts a structure agreement from the first insurance company then an annuity is purchased to pay for the settlement. Annuities are issued through insurance companies. So the first insurance company will purchase an annuity via a second insurance company. It is the annuity from the second company that will make the payments over time to the injured party based on the terms of the settlement. The first insurance company has to purchase the annuity from another unaffiliated insurance company and cannot use one of their own financial products for this purpose.