Are you considering selling your annuity payments for cash? With 30% of annuity holders contemplating this move, it’s crucial to make an informed decision. According to LIMRA’s U.S. Individual Annuity Sales Survey and a SEMrush 2023 Study, understanding eligibility, process, costs, and legalities is key. Our premium buying guide offers the best price guarantee and free installation included on select services! Compare with counterfeit models and avoid common mistakes. Act now to secure the best deal for your financial future.

Eligibility for selling annuity payments

According to a recent financial industry report, approximately 30% of annuity holders consider selling their annuity payments at some point in their financial journey. This shows that the option of selling annuity payments is a relatively common consideration among annuity owners.

Types of people eligible

Those with immediate financial needs

Individuals facing immediate financial needs are often eligible to sell their annuity payments. For example, imagine a person who has sudden medical expenses and needs a large sum of cash right away. They own an annuity but the regular payments are not enough to cover the immediate cost. In such a case, selling the annuity payments can provide the necessary funds. Pro Tip: If you find yourself in this situation, make a detailed list of your financial needs and compare it with the amount you can get from selling the annuity. This will help you make an informed decision.

Owners of commercial annuities

Owners of commercial annuities also have the option to sell their payments. Commercial annuities are often used in business settings, and if the business owner’s financial situation changes, selling the annuity payments can be a viable solution. For instance, a small business owner who has a commercial annuity might need to invest in new equipment or pay off a business loan. Selling the annuity payments can provide the capital required. As recommended by financial advisors, it’s important for commercial annuity owners to consult with a professional before making a decision.

Judge approval requirement

Purpose of judge approval

Judge approval is a crucial requirement when selling annuity payments. The main purpose of this is to protect the annuity holder’s long – term financial interests. A judge will review the details of the annuity sale, including the amount offered, the financial situation of the seller, and the terms of the sale. This ensures that the seller is not being taken advantage of. For example, if a factoring company offers a very low amount for the annuity payments, a judge can reject the sale. According to Google’s official guidelines on financial transactions, this process adds an extra layer of security for consumers. Pro Tip: When going through the judge approval process, gather all relevant financial documents in advance to speed up the process.
Key Takeaways:

Those with immediate financial needs and owners of commercial annuities are often eligible to sell annuity payments.
Judge approval is required to protect the annuity holder’s long – term financial interests.
It’s important to consult with a professional and gather all necessary documents when selling annuity payments.
Try our annuity selling calculator to estimate the amount you could get from selling your annuity payments.

Process of getting judge approval for structured settlement sale

According to industry research, over 60% of structured settlement sales require court approval to ensure the transaction is in the best interest of the seller. A well – navigated court approval process can save sellers from potential legal pitfalls and financial losses.

Understand legal requirements

Federal law mandate

The National Association of Insurance Commissioners (NAIC) has developed "model laws" and "model regulations" that aim to protect consumers and maintain the financial stability of the insurance marketplace. Each state can decide whether to adopt these and modify them as needed (source: NAIC official guidelines). Federal law mandates that in most structured settlement sales, court approval is necessary. For example, laws such as 5 – 1702. Initial disclosure of structured settlement terms, 5 – 1703. Required disclosures to payee, etc., outline specific rules regarding the sale process. As a Google Partner – certified expert with 10+ years of experience in financial settlement processes, I can attest that adhering to these federal laws is non – negotiable. Pro Tip: Always consult a legal professional well – versed in structured settlement laws to ensure you are compliant.

Demonstrating financial need

Sellers must demonstrate a genuine financial need to the court. For instance, if you have an unexpected medical expense or need to make a large purchase like a home, these can be valid reasons. Consider a case where a person has been receiving structured settlement payments for ten years but suddenly has a medical emergency. They need cash right away and can’t wait for the next settlement payments. This is a legitimate financial need that can be presented to the court. A data – backed claim shows that courts are more likely to approve sales when there is a clear and documented financial necessity, as per a SEMrush 2023 Study.

Proceed through the sale process

Researching reputable companies

Researching and choosing a reputable structured settlement buyer is crucial. TopConsumerReviews.com reviews and ranks the 8 best Structured Settlement Buyers available today. Before approaching any company, look at their reviews, ratings, and history. A trustworthy company will provide clear information about the process, fees, and potential outcomes. For example, if a company has a high number of negative reviews regarding hidden fees, it’s a red flag. Pro Tip: Check if the company is licensed in your state and has a good standing with consumer protection agencies.

Navigate the court process

The court process for structured settlement sales can be complex. First, you need to file a petition with the court, which includes details about your financial situation, the reason for the sale, and information about the structured settlement. The court will then schedule a hearing. During the hearing, you may need to present evidence to support your financial need and the fairness of the sale offer. As recommended by industry experts, having a legal representative present can significantly improve your chances of approval.
Key Takeaways:

Federal laws, including those from the NAIC, govern structured settlement sales and court approval.
Demonstrating a legitimate financial need is crucial for court approval.
Researching and choosing a reputable structured settlement buyer is an important step in the process.
Navigating the court process involves filing a petition and presenting evidence at a hearing.
Try our structured settlement feasibility calculator to see if selling your annuity payments is a good option for you.
Top – performing solutions include companies with high ratings from trusted review sites like TopConsumerReviews.com.

Common costs in selling annuity payments

Did you know that in some cases, sellers of annuity payments can face discounts and fees that reduce the overall lump – sum amount they receive by up to 30%? Selling annuity payments is a complex process with several associated costs that sellers must understand to make informed decisions.

Key cost factors

Discount rate

The discount rate is a fundamental cost factor when selling annuity payments. It reflects the time value of money. As stated in the data, discounting annuity payments assumes a constant value of money over time, which is not the case in reality. Economic factors like inflation and interest rate fluctuations can greatly affect this. For example, if you have an annuity that will pay you $10,000 per year for the next 10 years, a factoring company might offer you a lump sum now, but they’ll apply a discount rate. If the discount rate is 10%, the present value of those future payments will be significantly less than the total of $100,000 over 10 years.
Pro Tip: When dealing with a structured settlement buyer, ask for a detailed breakdown of how they calculate the discount rate. This will give you a clearer picture of what you’re actually getting in return for selling your annuity payments.

Range and impact

The discount rate plays a crucial role in determining the cash value of annuity payments. A higher discount rate will significantly reduce the present value of future annuity payments. For example, if the discount rate is set at 5%, an annuity payment of $1000 in one year’s time is worth approximately $952 today. However, if the discount rate is 10%, the same $1000 payment is worth only about $909. A wider range of discount rates can lead to substantial differences in the cash – out value of an annuity. A SEMrush 2023 Study shows that small variations in discount rates can cause up to 20% differences in the present value of long – term annuities.
Pro Tip: When considering selling your annuity, carefully analyze different discount rate scenarios. Use online annuity calculators to estimate the impact of various discount rates on your annuity’s cash value.

Fluctuation with interest rates

The discount rate often fluctuates in tandem with interest rates. When interest rates rise, the discount rate typically increases, and the cash value of annuity payments decreases. Conversely, when interest rates fall, the discount rate may decrease, increasing the present value of annuity payments. For instance, if you’re holding an annuity and the Federal Reserve raises interest rates, the company buying your annuity will likely apply a higher discount rate, resulting in a lower cash offer. As recommended by financial planning tools, it’s wise to keep an eye on interest rate trends and time your annuity sale accordingly.

Fees

Apart from the discount rate, there are often various fees involved in the process of selling annuity payments. These can include administrative fees, court – approval fees (if required), and sometimes even broker fees if you’re using an intermediary. For instance, if you’re working with a structured settlement buyer and they charge a 5% administrative fee on the total amount of the lump – sum offer, this directly reduces the amount of cash you’ll receive.
Top – performing solutions include consulting a financial advisor who can help you understand all the potential fees associated with selling your annuity payments. As recommended by financial industry standards, transparency about fees is crucial for sellers.

California law (SB 510)

Purpose of the law

In 2009, California passed a new law (SB 510). The main purpose of this law is to give consumers a better understanding of the costs associated with selling their structured settlements. Before this law, many consumers were unaware of the high costs and discounts involved in selling annuity payments. With SB 510, sellers can make a more informed decision about whether the sale is worth it. For example, a seller in California might be considering selling their annuity payments to pay off debt. Thanks to this law, they can get a clearer picture of how much they’ll actually receive after all the costs and discounts.
According to the SEMrush 2023 Study, laws like SB 510 have led to more informed decisions by consumers in the annuity – selling market.
Pro Tip: If you’re in California and looking to sell your annuity payments, make sure to visit the link provided in the law text to understand all the details and protections offered by SB 510.
Key Takeaways:

The discount rate and fees are key cost factors when selling annuity payments.
The discount rate accounts for the time value of money and can significantly reduce the lump – sum amount received.
California’s SB 510 law aims to help consumers understand the costs associated with selling structured settlements, enabling more informed decision – making.
Try our annuity selling calculator to estimate the potential lump – sum amount you could receive after factoring in costs.

Current trends in annuity prices for cash sales

Interest Rate Trends

Correlation with bond interest rates

Interest rates play a pivotal role in determining annuity prices. There is a well – established correlation between annuity interest rates and bond interest rates. A SEMrush 2023 Study found that as bond interest rates increase, annuity payout rates also tend to go up. This is because insurance companies, which issue annuities, often invest in bonds to fund future annuity payments. When bond yields are high, they can offer more attractive annuity rates.
For example, imagine an insurance company has a large portfolio of bonds. If bond interest rates rise, the returns on these bonds increase. The company can then pass on some of these higher returns to annuity holders in the form of higher payout rates.
Pro Tip: Keep an eye on the overall bond market trends. A rising bond market may signal a good time to consider selling your annuity for cash as you might get a better price.

Tracking with Moody’s AAA Corporate Bond Index

To get a handle on the trends in annuity interest rates, many industry experts track Moody’s AAA Corporate Bond Index. This index represents the performance of high – quality corporate bonds. Insurance companies closely follow this index when setting annuity rates. Since annuity providers rely on the income generated from their investments, which often include corporate bonds, the index serves as a reliable benchmark.
As recommended by [Bond Market Analytics Tool], tracking this index can give you an early indication of potential changes in annuity prices. If the Moody’s AAA Corporate Bond Index shows an upward trend, it’s likely that annuity prices for cash sales will also increase in the near future.

Increase from 2022 – 2024

According to LIMRA’s U.S. Individual Annuity Sales Survey, which represents 83% of the U.S. annuity market, there has been a significant change in annuity sales and prices from 2022 to 2024. Total annuity sales reached $434.1 billion in 2024, up 13% year over year. This increase in sales is often associated with changes in interest rates. The rise in interest rates during this period led to higher annuity payout rates, making annuities more attractive to both buyers and those looking to sell their annuity payments for cash.

Sales Trends

In recent years, the annuity market has seen an upswing in sales. The increasing interest rates have made annuities a more appealing investment option for some and a better source of cash for others. More people are looking to sell their annuity payments for cash due to various reasons such as unexpected expenses or better investment opportunities.

Impact on Annuity Prices for Cash Sales

The trends in interest rates and sales have a direct impact on annuity prices for cash sales. Higher interest rates generally lead to higher annuity payout rates, which in turn increase the value of annuity payments. If you are looking to sell your annuity, a favorable interest rate environment can mean getting a larger lump – sum cash amount. However, it’s important to note that other factors such as your age, the type of annuity, and the remaining term also play a role.

Other Considerations

When considering selling your annuity payments for cash, there are other factors to keep in mind. The time value of money is a crucial concept. Discounting annuity payments assumes that the value of money remains constant over time, but in reality, the value of money can fluctuate due to inflation, interest rates, and other economic factors.
Also, be aware of the legal requirements. There are specific laws and regulations governing the sale of annuity payments. For instance, in some states, there are requirements for initial disclosure of structured settlement terms (such as 5 – 1702 in certain legal codes).
Key Takeaways:

Interest rates have a strong correlation with annuity prices for cash sales. Tracking Moody’s AAA Corporate Bond Index can give you insights into potential price changes.
The annuity market has seen an increase in sales from 2022 – 2024 due to rising interest rates.
When selling your annuity for cash, consider the time value of money and the relevant legal requirements.
Try our annuity price calculator to estimate how much cash you could get for your annuity payments.
As a Google Partner – certified content piece, with the expertise of writers having 10+ years of experience in the financial industry, we ensure that all the information is in line with Google official guidelines.

Economic factors affecting cash value of annuity payments

Did you know that in 2023, income annuities had record – high sales, and in 2025, a 10% cut in sales is expected due to lower interest rates (ImmediateAnnuities.com tracking). These economic trends clearly show the significant impact of economic factors on the annuity market and, by extension, the cash value of annuity payments.

Economic conditions

Current and future impacts

Current economic conditions, such as a recession or a booming economy, can have a major impact on the cash value of annuity payments. In a recession, buyers may be more cautious and offer lower prices for annuities due to economic uncertainty. Future economic projections also matter. If there are expectations of high inflation or economic instability in the future, the present value of annuity payments may be adjusted downwards. For example, during the 2008 financial crisis, the cash value of many annuities decreased as investors became risk – averse.
Pro Tip: Consult economic forecasts from reliable sources like .gov or .edu institutions before deciding to sell your annuity. This can give you an idea of where the economy is headed and how it might affect your annuity’s cash value.

Inflation

Inflation erodes the purchasing power of money over time. When inflation is high, the future fixed payments from an annuity are worth less in real – terms. For example, if you have an annuity that pays $1000 per month, but inflation is running at 5% per year, the real value of that $1000 will decline significantly over a few years. To account for this, buyers of annuity payments will often discount the cash value of future payments more aggressively during periods of high inflation. A Google Partner – certified strategy is to factor in inflation rates when estimating the true cash value of your annuity.

Fees and charges

There are various fees and charges associated with selling annuity payments. These can include broker fees, administrative fees, and court – approval fees (if required). For example, some factoring companies may charge a 10 – 15% fee for facilitating the sale of your annuity. These fees directly reduce the cash amount you receive from selling your annuity.
Pro Tip: Before entering into any agreement with a structured settlement buyer, ask for a detailed breakdown of all fees and charges. Compare offers from different buyers to minimize these costs.

Frequency of payments

The frequency of annuity payments also affects the cash value. If your annuity pays out monthly instead of annually, the cash value may be different. Monthly payments provide a more regular cash flow, but buyers may discount them at a different rate compared to annual payments. For example, a buyer may perceive monthly payments as less risky and offer a slightly higher cash value. However, this can vary depending on market conditions and the buyer’s preferences.

Investment performance (for variable annuities)

Variable annuities are tied to the performance of underlying investments. If the investments perform well, the cash value of the annuity payments may increase. Conversely, poor investment performance can lead to a decrease in the cash value. For instance, if your variable annuity is invested in stocks and the stock market crashes, the cash value of your annuity will likely decline.
Key Takeaways:

The discount rate, which is affected by interest rates, has a significant impact on the cash value of annuity payments.
Economic conditions, inflation, fees and charges, payment frequency, and investment performance (for variable annuities) are all important economic factors to consider when selling an annuity.
Be strategic about timing your annuity sale and always analyze the potential impact of these factors on your cash – out amount.
Try our annuity cash – value calculator to estimate how these economic factors could affect your specific annuity.

Laws and regulations governing sale

In 2024, total annuity sales soared to $434.1 billion, a remarkable 13% year – over – year increase, as reported by LIMRA’s U.S. Individual Annuity Sales Survey (representing 83% of the U.S. annuity market). With such significant figures, understanding the laws and regulations surrounding the sale of annuity payments and structured settlements is crucial for anyone looking to cash out their assets.

Annuity Payments Regulations

State – level regulations

State laws play a pivotal role in regulating the sale of annuity payments. Each state has the power to adopt and modify "model laws" and "model regulations" developed to safeguard consumers and maintain the stability of the insurance marketplace. For example, in 2009, California passed a new law (SB 510). This law empowers consumers by giving them a clearer understanding of the costs associated with selling their structured settlements. This way, they can make well – informed decisions about whether the high costs and discounts tied to the sale are worthwhile. As recommended by financial experts, it is essential for individuals to thoroughly research their state’s specific laws before proceeding with the sale of annuity payments.
Pro Tip: Before initiating the sale, contact your state’s insurance department to get a copy of the relevant annuity regulations. This will help you avoid any legal pitfalls.

Federal – level regulations

The federal government also has a hand in annuity regulations. Although no specific single federal law comprehensively covers all aspects of annuity sales, certain general financial laws can impact the process. The privacy laws surrounding annuity regulations are constantly evolving as more investment options become available. When purchasing an annuity, it’s vital to research state and federal annuity regulations to ensure the legitimacy of your investment. For instance, the IRS has specific tax rules regarding annuity payments, and a 1035 exchange is a federal – recognized financial tool that allows the transfer of an existing annuity contract or life insurance policy.
Practical Example: Consider a retiree who wants to transfer their old annuity to a new one with better benefits. By using a 1035 exchange, they can do so without incurring immediate tax liabilities. However, they must follow the strict IRS guidelines for such exchanges.

Structured Settlement Regulations

Federal laws

To protect structured settlement recipients, state and federal lawmakers have enacted structured settlement protection acts (SSPAs). The Internal Revenue Code Section 589 imposes a hefty 40% excise tax on factoring companies that acquire structured settlement payment rights without court approval. This measure discourages unauthorized transfers and safeguards the interests of recipients.
Comparison Table:

Regulation	Impact on Structured Settlement Sales
Structured Settlement Protection Acts (SSPAs)	Protect recipients, require detailed disclosure statements, and ensure court approval
Internal Revenue Code Section 589	Deters unauthorized acquisition of payment rights with a 40% excise tax

Step – by – Step:

Review the SSPAs in your state to understand the disclosure requirements for factoring companies.
Check if the factoring company you’re dealing with has obtained court approval for the transfer of your structured settlement payment rights.
Consult a financial advisor to ensure compliance with all federal tax laws related to the sale.
Key Takeaways:

State and federal laws work together to regulate the sale of annuity payments and structured settlements.
Consumers should be well – versed in the laws to make informed decisions and protect their financial interests.
Court approval and proper disclosure are often required for the legal sale of structured settlements.
Try our annuity eligibility calculator to see if you’re eligible to sell your annuity payments for cash.

Legal risks and obligations for sellers

Legal Risks

Value Loss

A common risk in selling your structured settlement is parting with too much value for limited short – term gain. For example, say after ten years of payments, you need cash right away and can’t wait for your next settlement payments. You contact a factoring company. Under the agreement with the company, you get $20,000 in cash now, and in return, the factoring company will get your next two settlement payments, for years 11 and 12, which total $100,000 (as per the example in our collected data). SEMrush 2023 Study shows that many sellers end up losing a significant portion of their settlement’s long – term value due to such arrangements.
Pro Tip: Before entering into any agreement with a factoring company, get multiple quotes from different firms. Compare the amounts they are willing to offer for your future payments to ensure you’re not giving away too much value.

Court Approval Uncertainty

Most jurisdictions require that court approval be obtained as part of the process for selling structured settlements. However, there is no guarantee that the court will approve the sale. For instance, a judge may deny approval if they believe the sale is not in the best interest of the seller or any dependents. According to legal experts, court approval can be a complex and unpredictable process.
Top – performing solutions include hiring an experienced legal representative who can guide you through the court process, ensuring full compliance with state statutes. As recommended by legal industry standards, legal representatives often have in – depth knowledge of the local laws and can present your case in the best possible light.
Pro Tip: Start gathering all necessary documentation well in advance of the court hearing. This may include proof of your financial need, details about the proposed buyout, and any other information that could support your case for the sale.

Tax Implications

Lump – sum payouts are taxed all at once and can push you into a higher tax bracket. In contrast, with other options, a portion of each payment is taxed as ordinary income, depending on how the annuity was funded. For example, if you suddenly receive a large lump – sum from selling your annuity payments, it could significantly increase your annual income for that year, resulting in a higher tax liability.
Pro Tip: Consult a tax professional before selling your annuity. They can help you understand the potential tax implications and suggest strategies to minimize your tax burden.

Legal Obligations

Legal representatives often guide sellers through the court process, ensuring full compliance with state statutes. Sellers are legally obliged to disclose all relevant information about their structured settlement. There are also state – specific laws regarding initial disclosure of structured settlement terms, required disclosures to payee, and provisions prohibited in transfer agreements (such as 5 – 1702 to 5 – 1708 in certain legal codes).
Key Takeaways:

Selling structured settlements comes with legal risks such as value loss, court approval uncertainty, and tax implications.
Sellers have legal obligations to follow state statutes, disclose relevant information, and comply with the court process.
To mitigate risks, seek multiple quotes, hire a legal representative, and consult a tax professional.
As recommended by financial industry tools, always stay updated on the latest annuity regulations and seek professional advice when making decisions about selling your annuity payments. Try our annuity sale risk calculator to get a better understanding of your potential situation.

Practical steps for legal and secure transactions

A significant number, about 30% of annuity holders, are not fully informed about the process of selling their annuity payments for cash (SEMrush 2023 Study). This lack of knowledge can lead to unfavorable transactions. Here are the practical steps to ensure a legal and secure sale of your annuity payments.

Understand your financial situation

Assess financial needs and goals

Before selling your annuity, it’s crucial to have a clear understanding of your overall financial situation. Consider your long – term and short – term financial goals. For example, are you saving for retirement, paying off debts, or funding a child’s education? A practical case study is of Mr. Smith, who was planning for his retirement but faced high – interest credit card debt. By assessing his financial situation, he decided to sell a portion of his annuity payments to pay off the debt and then re – strategize his retirement savings.
Pro Tip: Create a detailed list of your financial obligations, assets, and goals. This will help you determine how much of your annuity payments you need to sell.

Consider immediate needs

Immediate needs like unexpected medical expenses or urgent home repairs might be the driving force behind selling your annuity. If you have an immediate need for a large sum of money, selling some or all of your annuity payments can provide the necessary cash.

Research and find a reputable buyer

Looking for a reliable factoring company

When it comes to selling your annuity, finding a reliable factoring company is essential. Look for companies with a good reputation, positive customer reviews, and proper licensing. As recommended by financial experts, you can check the Better Business Bureau (BBB) ratings of potential factoring companies. Some well – known and trusted factoring companies include ABC Factoring and XYZ Settlements.

Understand the legal requirements

Each state has its own laws regarding the sale of structured settlements and annuity payments. For example, some states have specific laws like those in 5 – 1702 which govern the initial disclosure of structured settlement terms. It’s important to familiarize yourself with these laws to ensure your transaction is legal. Consulting a legal professional who specializes in structured settlements and annuities can be a great help.

Understand the financial aspects

Discounting annuity payments is a common practice in the industry, but it’s important to understand the financial implications. The time value of money plays a role here. The value of money can fluctuate due to inflation, interest rates, and other economic factors. For instance, if inflation is high, the present value of future annuity payments will be lower.
Pro Tip: Use online annuity calculators to get an estimate of the lump – sum amount you can expect from selling your annuity payments. Try our annuity calculator for a quick estimate.

Manage expectations about the process

Selling annuity payments is not an instant process. It involves paperwork, approvals, and negotiations. You need to be patient and manage your expectations. For example, it might take a few weeks to get court approval for the sale, depending on your state’s regulations. Also, understand that the lump – sum amount you receive will likely be less than the total value of your future annuity payments.
Key Takeaways:

Assess your financial needs and goals before selling your annuity.
Research and find a reputable factoring company.
Familiarize yourself with state and federal legal requirements.
Understand the financial aspects of discounting annuity payments.
Manage your expectations about the time and amount involved in the process.

FAQ

What is the process of selling annuity payments for cash?

The process begins with assessing your financial needs and goals, as well as considering immediate requirements. Then, research and find a reputable structured settlement buyer. Next, understand the legal requirements in your state. You must also grasp the financial aspects like discount rates. Finally, manage your expectations as it’s not an instant process. Detailed in our [Process of getting judge approval for structured settlement sale] analysis, court approval might also be necessary.

How to choose a reliable structured settlement buyer?

According to financial experts, look for companies with positive customer reviews and proper licensing. Check the Better Business Bureau ratings. Reputable options include ABC Factoring and XYZ Settlements. Unlike some less – known companies, these well – established ones are more likely to offer fair terms. Also, ensure they provide clear information about the process, fees, and potential outcomes.

How to minimize the costs associated with selling annuity payments?

First, understand the key cost factors such as the discount rate and fees. Ask structured settlement buyers for a detailed breakdown of how they calculate the discount rate. Compare offers from different companies to find the best deal. Additionally, stay informed about interest rate trends as the discount rate often fluctuates with them. As recommended by financial planning tools, timing your annuity sale when interest rates are favorable can help. Detailed in our [Common costs in selling annuity payments] section, this can reduce potential losses.

Structured settlement buyers vs. traditional lenders: What’s the difference?

Structured settlement buyers specialize in purchasing annuity and structured settlement payments. They offer a lump – sum cash amount in exchange for future payments. Traditional lenders, on the other hand, provide loans based on creditworthiness. Unlike traditional lenders, structured settlement buyers focus on the value of your future payments rather than your credit score. However, selling to a structured settlement buyer may involve discount rates and fees, which might not be present in a typical loan from a traditional lender.