Should I Sell My Payments?

Selling your structured settlement or future annuity payments can be a daunting and unnerving process. Determining whether or not you should sell in the first place is entirely personal and can be based on a number of factors. Whether you are hoping to buy a house, pay off debt, or start a business, selling your settlement or annuity might be the best option for your financial health.

Buying a Home

Much of the American Dream centers around buying a home and becoming the king of your castle. If you are like most Americans, this purchase will likely be one of the largest and most important financial decisions of your lifetime. Even if you are looking at buying a small home, saving enough for a down payment is never easy, and in today’s competitive real estate market, every cent counts. One way to speed up this process is by selling a portion, or all, of your future payments.

Buying a home is more expensive than just the list price. Between closing costs, inspection fees, and even curtains, a lump sum of cash would be particularly useful. According to, average closing costs range between 2%-7% of the purchase price in addition to the down payment which means a lot more money than most anticipate throughout the buying process.

Another reason to sell your annuity is to help produce a larger down payment which results in a lower monthly mortgage. Considering mortgages are based entirely on interest, a lower monthly payment, or shorter pay period could save you thousands in the long run. In addition to the mortgage savings, you would not be required to pay for private mortgage insurance if more than 20% of the purchase price is put as a down payment.

In addition to down payments and hidden fees, a lump sum can also be useful in fixing up a home once it is purchased. Instead of working on a fixer-upper over time, selling your future payments could provide you the funds to make all of the repairs up front, allowing you to enjoy your home sooner.  This same concept applies with interior design and furnishings.

Paying off Expensive Debt

Most Americans have accumulated high interest credit card debt which is costly overtime and can hurt your credit. Selling your structured settlement or annuity could provide a lump sum to wipe out previous debts and save you money in the long run. It is important to remember that you do not need to sell your entire annuity or future payments, just the amount you need to put yourself in a better financial position.

Buying a Car

Trying to buy a car with a loan can be difficult if you have less than perfect credit. And even with a loan, cash is needed for a down payment. If you have a structured settlement or annuity, you do not need to take on additional debt in order to purchase a vehicle. Similar to credit card debt, purchasing a car outright would avoid interest incurred over the lifetime of the loan and could potentially save you money. Selling your future payments would allow for a down payment of a car, easier access to funds for payments, or even the entire purchase price of the car itself.

Paying for Education

College is an expensive endeavor yet considered almost necessary with regard to earning potential over a lifetime. Even with scholarships and financial aid, most Americans who go to college still end up with thousands of dollars in student loan debt that takes decades to pay off. While obtaining a degree can mean a more lucrative career for you or a loved one, selling future payments could prevent you from going into debt for education. It could also help pay for the additional expenses of college including room and board, books and supplies, technology, and hidden fees such as parking. While educational costs vary by institution, the opportunity to earn a degree without accumulating debt through use of future payments would provide lasting peace of mind.

Starting Your Own Business

According to internet hosting company GoDaddy, one in three people plan on starting their own business within the next ten years. Whether you are determined to set your own schedule, follow your passions, or improve the life of your loved ones, being your own boss can be very rewarding yet needs initial capital to fund the endeavor.

Instead of a traditional bank loan to start your business or using a credit card which can be costly in the long run, selling your future annuity payments or structured settlement could provide the sum you need get your business started. Banks tend to require a detailed plan on how the business will be run before any funds will be provided, and even then, you might not get the amount you need. On top of that, you will be paying the bank back for years, with interest.

Self-funding through the sale of your annuity or structured settlement is a way to avoid debt, credit checks, and interest rates. While you might not be able to grow your company as quickly as a bank loan, selling your future payments could provide the initial capital you need to start the business you’ve always wanted.

Health and Medical Expenses

Unexpected medical bills and other health expenses can be debilitating to your financial well-being. While most hospitals will work with patients to create payment plans, debt still lingers but using your structured settlement or annuity can help. By paying off bills with a lump sum, you avoid incurred interest and drawn out payment plans.

Depending on your insurance, the first several thousand dollars of any medical emergency will come out of pocket. On top of that, oftentimes insurance doesn’t cover expenses incurred including:

  • Specialists
  • Elective Procedures
  • Fertility Treatments
  • Dental
  • Custom Prescriptions
  • Long-Term Care
  • Caregivers

Without insurance, these bills will only be more expensive. By selling your annuity or structured settlement, debt can be eliminated or minimized, and loved ones can be cared for. On top of that, without the burden of medical debt, you are more able to keep pursuing your goals and maintain a healthier financial future.


Healthier lifestyles and medical advances mean that people are living longer than ever before. While the retirement age remains around 65 for most Americans, many continue to live well into their 80s and 90s. With an extended lifespan also comes a larger savings required to live comfortably through your golden years. For many, rethinking their structured settlements or annuity payments can help alleviate the financial stresses that come with aging.

Considering where you want to live is an important aspect to retirement. Whether you have purchased your home, want to relocate to a 55+ community, or live by the beach in an apartment, you have options. Keeping your health in mind when making this decision is also prudent as unexpected difficulties and health concerns might arise as you age. While budgeting is necessary for a successful, comfortable retirement, restructuring your future annuity payments or structured settlement could allow for easier planning as well as more money up front to enjoy your retirement. Depending on where you choose to live as well, you might be required to pay a lump sum to join a retirement community or buy an apartment. Selling your annuity could also help with that.

Determining if you should sell your structured settlement or annuity is an entirely personal decision based on a number of factors. If you have financial goals that are currently not being met, however, selling your future payments might be the correct choice in setting yourself up for a healthier financial future. Our team is here to answer any questions you might have throughout your decision process. Call us today to see if selling is the right move for you!

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