Here are 4 common problems that you can run into and some information on how to avoid the mistakes that can cost you money.

Only talking to one company

Often times you can find many companies online that are willing to buy your structured settlement, no matter what the funding source.  Sometimes if you talk to only one company it can sound to good, almost to good to be true.  When you talk to only one company, you are limiting the information that you have about what the best way to sell your settlement payments.

By limiting yourself to only one company, you could lose money.  You want to talk to several companies, find out their fees and charges, learn more about the process and get the most for your money.  No company is going to give you the full amount of what you would receive if you would keep the monthly payments.

Getting Personal

You must remember that people that buy structured settlements are in sales.  They are buying something from you and want to get the most for the least amount of money.  It is ok to talk to them, but remember to keep it business.  When it becomes personal, you can feel emotions while working out the details and the feelings you might have about your broker can affect your thinking.

Not Seeking Professional Advice

Don’t hesitate to seek the advice or assistance of a financial planner or lawyer during this process.  Remember, you might have won a judgment or been awarded money and it purchased an annuity.  The sum of all payments over the time of the annuity, let’s say would equal $1 million dollars.  The companies that buy annuities and settlements are in the business to make money by giving you cash up front, maybe $500,000 or so and they keep the full amount of the payments.  Don’t forget about what the value of future payments could mean to you, which leads us to the final point.

Seeing quick cash for today but forgetting about tomorrow

Even if you are in need of cash for today and think that selling your structured insurance settlement is a good idea, don’t forget about what your future needs may be.  You might have a large amount of bills or college to pay for, but where will your money come from in the future if you sell your annuity today for a portion of what it would be worth over the term of it?

In summary, think about what your future may hold as far as your finances goes, seek professional advice about the costs associated with it, don’t let it be personal and be sure to shop around.  You will know when you have found the right company offering the right amount when you need to sell your structured insurance settlements.