RJE Capital Seller’s Guide

A comprehensive guide to the sale of your structured settlement and annuity policy in the new era

What Is A Structured Settlement?

There’s no need to over complicate structured settlements; they’re simple! Structured settlements, or annuity payments, is a stream of payments over a period of time that have been negotiated. You receive periodic payments over time instead of large lump-sum payments and when money is put towards an annuity payment, periodic payments are guaranteed from an insurance company. 

Periodic payments are often safer for your financial security in the future. For example, when you settle a lawsuit for which you have been receiving compensation. This could be for medical malpractice, personal injury, or even if you’ve won the lottery. A guaranteed periodic payment will provide you with financial stability and protect your spending habits (sometimes we have to resist buying that really cool drone that we don’t need).

How To Sell Your Structured Settlement

Selling your structured settlement is easy once you feel secure and satisfied with the information you receive. Once your structured settlement is negotiated and established, you’ll be paid through periodic installments over time until you’re fully compensated. However, selling your structured settlements may be beneficial for you at any given time. Maybe you need cash quickly for health expenses, your education, finally starting your own business, or even buying your dream house. 

So if you decide to sell, we’ll break down the process for you and guide you to make it as simple and efficient as possible. While this will all be explained in detail further on, here is a quick breakdown of how we work. 

First, we’ll be in contact to learn about your needs and payment stream. After reviewing all documents and information, we’ll give you an offer you won’t find elsewhere. We’ll then send you required disclosures and our contract package. Once you look through and sign the contract, we’ll review everything and make sure we are both ready and prepared to move forward. Then we will file for court review and approval of your transaction. After the approval and your file is determined to be complete, we’ll close and fund your transaction. 

Understanding your Structured Settlement

We mentioned some of the ways you’ve received a structured settlement, but here are some more specific details to help you understand. While each case is unique, it is important that you feel that you fully grasp your own financial situation.

Medical Malpractice Settlements: This could be from a misdiagnosis, incorrect treatment, or other errors that result in medical negligence. 

Personal Injury Settlements: This is when one is injured personally, and the cause could be either a person or an establishment due to reasons such as gross negligence or misconduct. Some damages that one could include would be medical bills or pain and difficulty within quality of life. 

Workers’ Compensation: This is a type of insurance where employees are offered medical care and benefits if they have become injured or sick while employed. The employee is then assured that the employee will not sue for negligence. 

Wrongful Death: This is a civil action when damages are requested against one for the cause of death, most often when there is no action taken or attempted against the party responsible. 

However, these are the most common suits that result in a settlement. If you have something more specific or feel like you need more information, connect with us and we will create a unique payment stream for you and your financial needs as soon as possible.

Pros and Cons of Selling Your Structured Settlements

Structured settlements can be ideal in a variety of cases. Having periodic payments can offer numerous benefits and advantages but it is important to understand that there are potential risks. You should be aware of both risks and benefits when deciding on any financial decision and always protect yourself. 

Pros:

  • You are in control of your finances. Selling your structured settlement can lead to more financial freedom and flexibility within a few weeks instead of years.
  • We give you a value you won’t find elsewhere and provide a simple, honest relationship with affiliates or vendors.
  • You can navigate yourself through an emergency and only sell what is truly necessary and still receive smaller periodic payments if you want. 

Cons:

  • Your future payments are going to change. The periodic payments you receive won’t be the full amount of your structured settlement anymore. 
  • Selling can sometimes lead to unwise financial decisions. Just be sure that you fully think this decision through.
  • Some settlement buyers will try to use high-pressure tactics that could impact how you make your decision.

It is important to understand both the pros and cons of selling your structured settlement. We want to make sure that you don’t feel alone or confused when potentially selling. By being informed and knowledgeable, you’ll be able to make the financial decision that works best for you.

The Process

After you speak to a trusted financial advisor, we are here to help you through our simplified approach on how to sell your structured settlements. Our process is easy to understand and we’re determined to make sure the transaction is smooth, efficient, and transparent. 

  1. The process is easy to get started once we learn about you and your financial needs. Once you fill out some information and answer some questions on our Annuity & Structured Settlement Calculator, we’ll understand more about your payment stream and send you a formal offer within a few hours. 
  2. After receiving our offer, we want you to take some time and determine that this is the best option for you and your financial situation. We will tell you exactly what your payments are worth on today’s market and will offer you a fair deal that can’t be matched by another company. All the fees associated with your transfer will be disclosed and we’ll be available 24/7 to answer any questions you may have.
  3. Next, we will be in touch with you after you’ve decided this is the right offer for you. We’ll send over all the required disclosures and our contract package to proceed. 
  4. Once you’ve reviewed and signed the contract, we will gather all your documents so you’re organised and informed. We are going to make sure that we work and stay informed together in case we need any additional information or documents for your case.
  5. Then, after we’ve sorted out all the documents and small details, we will file the sale of your structured settlement payment for court review and approval of your specific proposed transaction. We will fully coordinate and arrange the detail and guide you through this step to ensure your transaction is approved. The judge is just going to ask some simple questions before approving your case.
  6. Finally, once your case is determined to be complete and we’ve received all the necessary approvals, we close the case and fund your transaction. 

We know that this might seem daunting and overwhelming at times, but we’ve mastered our process so that it is easier, efficient, and transparent. We’ll always choose you and provide the best deal possible that is specific to your payments stream and financial needs. 

Negotiating The Best Deal

Understandably, after deciding that selling is the best course of action for your financial needs, you will want to make sure that you negotiate for the best deal possible. It is ok to get quotes from more than one company and it’s good to compare so you know your options. We encourage that when viewing quotes, you feel comfortable negotiating for a better deal and strive for the lowest discount rate. 

At RJE, we go one step further and help you compare quotes from various buyers. We are determined to make sure that you get the best value for your money and are completely satisfied. Our transparent approach and honesty will allow you to feel at ease knowing that you’ll be offered the lowest rate possible according to your payment stream.

Discount Rates Explained

Discount rates are quite easy to understand. It is just the difference between what cash you’ll receive from our transaction and what your annuity payment is worth. Essentially a small exchange for being able to receive cash quickly. There are multiple factors that can potentially affect your discount rate. Such as the value and number of payments you decide to sell, the current economic condition, and the interest rates that have been set by the Federal Reserve.

When you are looking at quotes from potential buyers, you want to make sure it’s the lowest discount rate you’re being offered. On average, the discount rate varies between 9% and 18%. However, we will offer a personalized solution with a lower than industry-average discount rate and revenue. Depending on your payment stream, we could offer you a discount rate as low as 5%.

Getting the Best Value

It is important that you are getting the best value for your structured settlements Once you’ve determined how much money you need and have decided to sell, we recommend that you talk with a trusted financial advisor and be aware of your options. Such as selling the entirety of your annuity, only a portion of your payments, or a lump-sum sale. 

At RJE, we’re determined to provide you with a value you won’t find anywhere else. With our approach to structured settlement purchases, we provide you with everything you need at a lower cost and higher standard. Getting you value for your money is our job and we work with you closely to make sure that you feel confident with your choices. From explaining how the math works and ensuring that you choose only what is most beneficial to you, we are here to focus on your financial needs.

 

Court Approval Explained

So, you might be wondering how to get the court to approve of your transaction. Since the majority of states require a judges approval before selling your structured settlement or annuity payments, our team is dedicated to guiding you through the process. We will help in arranging all the necessary court documents and scheduling a hearing. We work very closely with our legal team to ensure that it goes smoothly for you. 

Of course, be aware that once we guide you through the court process, it will be too late to change your mind and the outcome cannot be reversed. While this might make it seem stressful, we are only mentioning it so you’re knowledgeable and understand how this all works. Our team is committed to making you feel at ease and mitigate any stress or concern you may have. If you have more questions during this step of completing your transaction, we are available to you at any time.

After the judge asks you some simple questions (which we explain in more detail further on), they will review the structured settlement or annuity sale before finalising. Explained in the Structured Settlement Protection Acts (further down as well), your finances are being protected and the transaction proposed will be verified as in the best interest of you. Completing the court approval step on average can take about 35 to 60 days and once the judge approves of the sale, we’ll send you money within 24 to 48 hours!

The Judge’s Role

Now, let’s explain the judge’s role throughout the process. For the sale of your structured settlement or annuity payments, the judge has to approve in court that it is valid. The judge will ensure that you aren’t being taken advantage of and receiving a low rate for your best interest. As we previously mentioned, they may ask you some questions in court in order to approve your settlement transfer.

Some questions could be ‘how much you earn for a living’, ‘why are you selling your structured settlement or annuity payments’, ‘were you provided with a written disclosure and explanation by the buyer’, or ‘what is the discount rate you were offered’. There’s no reason to be stressed about what the judge may ask you and we will make sure that we have all the supporting documents and information regarding your case. 

The judge will look over the details and the information you tell them, such as why you’re doing this or if you’ve sold structured settlement or annuity payments before. It’s important that we point out the judge may choose to decline approval for your case for any given reason. However, there is no need to feel anxious about the process. Our team is going to make sure that we both feel at ease and knowledgeable throughout the entire process. If you have any concerns or questions you can reach out at any time and we’ll be happy to talk with you.