Certain insurance companies issue a contract for funding the payment of the damages for a person’s injury over a time period, which is known as the structured settlement annuity. In some cases, it is referred to as insurance settlement. The contract guarantees that your beneficiary will receive a payment or a series of payments, which is free from taxes when you pass away. Almost all the structured settlements are results of lawsuits.
Many people doubt whether selling structured settlement payments is legal. The answer to this question is that it is legal. If you are meeting certain requirements, you can sell structured settlement annuities.
The major requirement is that you should disclose the entire financial terms of the sale. You will also get the option of a cooling off period in which you can reconsider or even cancel the sale. You will have to present before a hearing in which the judge will study your case and decide whether to approve your sale or not. The information given above will give a proper understanding about selling structured settlement annuities.
