Sometimes your investments don’t turn out as you planned, and you might decide it’s time to sell your annuities. Selling a structured settlement can be challenging, mainly because you need court approval and have to deal with claim adjusters, attorneys, and buyers. You also need to figure out if using a broker is a good idea.
Firstly, a broker can help ensure all the technical details of your structured settlement are clear, avoiding any unexpected surprises. Often, there might be terms in your contract you’re not aware of, which could lead to a sudden drop in the quoted amount. A broker can guide you through every step to make sure all details are correctly presented.
Secondly, brokers are experts in financial negotiations, whereas lawyers, claim adjusters, and yourself may not be. They can help you find the right buyer for your annuities and negotiate the best deal. Also, brokers can handle the peripheral clauses of the settlement deal to get the most out of each.
Thirdly, brokers prepare all necessary documentation for court approval, which is essential for selling your structured settlements. They can help you answer court questions and speed up the process by ensuring all paperwork is in order.
However, adding a broker comes with its downsides. You’ll get immediate cash only after the settlement value is discounted, and broker fees might further reduce your financial benefits. It’s important to weigh the potential benefits of having a broker against the cost of their services.
There’s also the risk of encountering fraudulent brokers who may push you to sell to certain buyers without proper negotiation. You need to be cautious and avoid brokers who aren’t genuinely working in your best interest.
Before deciding whether to involve a broker, ask yourself a few questions:
1. How big is the amount of the structured settlement? If the amount is large, a broker might be worthwhile as they can help get a better deal, even a small percentage decrease in the discount rate can mean more money for you. However, if the amount is smaller, broker fees might offset any additional money they could secure.
2. Can the broker provide testimonials of their service? Look for brokers registered with the Department of Justice and check for client testimonials. Research online forums for feedback on brokers’ services to gauge their credibility. Also, consider if you trust the broker with your sensitive information.
