If you have decided it’s time to sell your settlement or annuity the first step is finding a reputable broker. Like any industry, there are a number of people out there who will be happy to take advantage of your situation. In many cases, a seller may think they are getting a good deal only to find out later they could have gotten a lot more. If you ask the right questions, however, it will be very easy to verify that you are working with the right people.
Can you give me a quote?
This first step is the most critical. It may seem obvious, but not enough people get multiple quotes from multiple brokers. When it comes to structured settlement sales quotes can vary quite widely, so this is no time to be lazy. Most brokers will offer free quotes online. The quote should also be free. If a broker wants to charge you to evaluate the price of your settlement, it’s a red flag that you don’t want to work with that person, because it is outside the norm of standard business practices for this industry.
How long is the quote good for?
This may not seem particularly important at first glance, but it is. If someone is telling you to sell now or they may not give you what they promised they could, it is a pretty good indication that they may be eager to change the terms of the settlement somewhere down the line. This can be very costly if you get into the process of selling, only to realize they weren’t honest. Plus, if they are confident that they are giving you a good price they will stand by it. If they are threatening to revoke the offer if you don’t sell immediately, chances are good they don’t want you shopping around.
What is your experience?
This is a valid and important question. It is best to get into business with someone experienced in the field. When selling an annuity, settlement or other product there can often be legal or contractual issues among other things. Experienced brokers know how to deal with these and help cut the red tape to make the deal happen.
Can you assist me in figuring out how much to sell?
It is important to remember you don’t have to sell your whole settlement, but can sell partial payments as well. Figuring out what is the best decision for you and your economic situation can be very confusing. A good broker will consult with you to help you figure it out and will never pressure you to sell the whole thing if that is not what you want.
If I don’t sell my whole settlement, who will hold the remainder of the payments?
This is a critical question that can reveal you are dealing with the wrong broker. When selling a partial payment, the remaining balance should stay with the original insurance company, not the company buying the settlement. Some of the largest names in the industry do this and it is a severe conflict of interest that could hinder you from selling more later on if the need were to arise.
How long will it take to get my money?
This is another issue that can vary widely among brokers, so it should definitely be asked. You may be surprised to find the length of time some brokers will take before you see one penny.
If you are considering your settlement, Sovereign Funding Group can help. We are a no-pressure company that will help you make an informed decision when selling all or part of a structured settlement. Call us today at 877-836-4661.
