Best Structured Settlement Companies

DRB Capital Structured Settlement CompanyDRB capital

DRB Capital is an industry leader in purchasing structured settlements, having helped thousands of clients over the years. In addition to competitive quotes, DRB Capital also offers their clients an outstanding customer service team that works efficiently to meet your needs. You’ll get a free, no-obligation quote quickly and the company also offers a best price guarantee.

The DRB Capital team will assign a representative to work closely with you to meet your individual needs. Each time you are in contact with DRB Capital you will be able to speak with this same individual who is familiar with your case. Even better, their representatives do not rush or pressure you to make a decision, but provide as much information and guidance as you require to make a decision. 

Rating: 5
Fairfield Funding

From their base in Atlanta, GA, Fairfield Funding provides customers with specialized service in the purchase of structured settlements. Fairfield Funding’s financial professionals offer expert service to customers selling their structured settlements.

Rating: 4

Novation Settlement Solutions

A structured settlement company based in West Palm Beach, Florida. Novation Settlement Solutions offers customers the ability to cash out their structured settlements, promising to make quick decisions. Novation Settlement Solutions also offers customers the ability to receive offers over the phone or submit their questions by email.

Rating: 4

CBC Settlement Funding

Headquartered in Conshohocken, PA, CBC Settlement Funding has been around since 2009. They have excellent customer service and offer multiple payout options so you can choose the best way to sell your structured settlement.

Rating: 4

Stone Street Capital

Stone Street Capital is located in Bethesda, Maryland and delivers fast funding times once a judge approves your structured settlement transaction. In fact, the company says the average wait time for funding is just one week after your court hearing.

Rating: 4

RSL Funding

RSL Funding has served thousands of customers over the years, with settlement lump sum payouts totaling $200 million. It’s a national company, but headquartered in Houston, TX. Additionally, RSL Funding offers a Most Cash Guarantee, plus there are referral bonuses available.

Rating: 3.5

WePayMoreFunding

WePayMoreFunding offers a lot of information so you know what to expect every step of the way. Plus, they’re committed to completing transactions as soon as possible, often between 45 and 90 days depending on the schedule of court hearings.

Rating: 3.5

What to Consider When Choosing a Structured Settlement Buyer

There are several factors to consider before choosing a factoring company that purchases annuity payments. Here’s what to look for.

  1. Customer service: Choose a company that promptly answers the phone, demonstrates knowledge and experience, and fully answers your questions.
  2. Low discount rate: Not all factoring companies offer the same discount rate. The higher the rate, the more money will be deducted from your funds as a fee to the structured settlement buyer. Make sure you get as much as possible for your settlement.
  3. Multiple buyout options: The buyer should listen to your needs and offer multiple options specific to your financial situation, rather than pushing you to sell all of your payments.
  4. Reputation: Check the reputation of the company, including checking for a license in your state, and a valid physical address in the U.S. Also check third party reviews on other websites and platforms.
  5. Legal help: Find out if the company helps with the legal process of court approval, including scheduling a hearing on your behalf.
  6. NASP membership: The National Association of Settlement Purchasers is a trade organization of structured settlement buyers in the secondary market. Membership indicates that the company pledges to abide by certain industry standards and principles.

Shop around and get quotes from multiple companies so that you know you’re getting the best deal possible.

Process of Selling a Structured Settlement

Understand what to expect when selling a structured settlement so you know what happens each step of the way and how long it would take.

  1. Shop around and get quotes from multiple companies: Most structured settlement companies offer free, no-obligation quotes over the phone. It takes just a few minutes, so it’s easy to gather several different options.
  2. Accept an offer: Find a company that offers a low discount rate and has a credible reputation. If the terms look good to you, you’ll sign papers and complete a full application.
  3. Receive court approval: The structured settlement company will arrange a court hearing so a judge can approve the transaction. This is for your protection to ensure that the lump sum of cash will be used in a way that helps your financial security.
  4. Get your money: Once the court approves the sale, a copy of the paperwork is sent to the insurance company that makes your annuity payments. Once that is processed, you’ll get your money from the buyer.

Overall, the process takes two to three months, depending on how quickly a court hearing is scheduled.

You don’t have to make this decision on your own. If you have questions or are confused, talk to a financial planner to get advice on how to move forward.

Understanding the Discount Rate

When you’re evaluating structured settlement companies, make sure you carefully look at the discount rate. This is essentially the fee you’re charged for the service of having your annuity purchased and receiving a lump sum in advance. It’s charged as a percentage of the value of your remaining structured settlement payments. The discount rate is then subtracted from the value and that is the amount of money you’ll receive.

There are many factors a buyer considers when calculating the discount rate. These include:

  • The value of your future payments
  • The remaining dates of your payment term
  • Interest rates
  • Court fees
  • Profit margins

You can typically expect a discount rate to range anywhere between 9% and 18% but it could be even higher. Plus, discount rate offers can vary from buyer to buyer, which is why it’s important to shop around.

The lower the discount rate, the more cash you’ll end up with.

Here’s an example of how a discount rate works. Say the value of a person’s remaining structured settlement payments is $50,000. A buyer offers a 15% discount rate. That means the seller would receive $42,500 rather than the full $50,000.

FAQ

Is it possible to sell structured settlement payments while going through a divorce?

A structured settlement is considered marital property, so you shouldn’t try to sell it until the divorce is finalized. Each state has its own laws on how assets are distributed during a divorce.

Who buys structured settlements?

There are professional companies that buy structured settlements, also called factoring companies.

What is the present value?

The present value calculates the value of your remaining structured settlement payments. In addition to the monthly payment amount, the present value also includes any interest that is expected to accrue during the remaining time frame.

Will I pay tax when selling my structured settlement?

Income tax does not apply for several types of structured settlements, including personal injury, wrongful death, or medical malpractice.

Can I cancel the sale of my structured settlement?

Yes, there is a period of time following the transaction during which you can cancel the sale. The amount of time you have varies depending on your state.