everything you need to know before selling your structured ... · selling your structured...

AUTHOR

RSL FUNDING, LLC

1980 POST OAK BLVD, SUITE 1975, HOUSTON, TX 77056

TEL: 713-850-0550 / TOLL FREE: 800-543-6513

EMAIL: [email protected]

WEBSITE: WWW.RSLFUNDING.COM

mailto:[email protected]

WWW.RSLFUNDING.COM

PREFACE

If you are considering selling your structured settlement or annuity, congratulate yourself on

taking the most important step in the process by reading this eBook – getting the knowledge

you need to make the best decision.

Selling a structured settlement can be one of the biggest decisions of your life. If done for the

right reasons, you can substantially improve your circumstances and be much better off in the

long run; however, if done for the wrong reasons, it can have a devastating effect on your

future financial prospects.

The best way to determine if selling a structured settlement is the right decision for you is to

get the knowledge you need to fully understand the process and the options available to you.

Reading this eBook is the perfect first step in acquiring the basic foundation of how you’ll need

to act in your own best interest. After reading this eBook, you’ll be armed with the education to

deal effectively with structured settlement buyers and ensure you receive the most money.

At RSL Funding, we pride ourselves on approaching structured settlement buying from a

different perspective than our competitors. While many structured settlement buyers operate

on a volume-based business model and are eager to process transactions regardless of the

impact on customers, we focus on the quality of our service and ensure our customers only sell

if it is the best possible decision for their particular circumstances.

We want to make sure everyone who considers selling their structured settlement, annuity, or

lottery winnings has the information they need to make an informed, intelligent decision. After

reading this eBook, you will have the information and insight to successfully navigate the

structured settlement buying industry and make the choice that best serves your interests.

TABLE OF CONTENTS

WHAT IS A STRUCTURED SETTLEMENT? ......................................................................................... 1

WHY SELL A STRUCTURED SETTLEMENT? ....................................................................................... 3

PROS AND CONS OF SELLING A STRUCTURED SETTLEMENT .......................................................... 7

AVOIDING STRUCTURED SETTLEMENT FRAUD ............................................................................... 9

THE STRUCTURED SETTLEMENT SELLING PROCESS ...................................................................... 11

WHY CHOOSE RSL FUNDING? ....................................................................................................... 12

Everything You Need to Know Before Selling Your Structured Settlement

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CHAPTER 1

WHAT IS A STRUCTURED SETTLEMENT?

In the most general terms, a structured settlement refers to a set of scheduled payments from

one party to another. Typically, a structured settlement is established after one party

successfully sues another in court and the other party is ordered to pay a specific, usually large,

sum. Instead of receiving a lump sum, the winning party is awarded a structured settlement,

which means the amount will be paid out in equal installments over the course of a set period

of time.

A structured settlement is different from an annuity, which is an insurance product the owner

has purchased that pays out a structured amount over a set period of time based on the

original amount invested and any additional investments made by the purchaser. Annuities are

typically used as part of a retirement strategy, where money is saved and invested throughout

the purchaser’s working years and then paid back in installments once the purchaser retires.

Receiving a structured settlement can provide a certain sense of security to the recipient. After

all, dependable, recurring payments are an easy way to set and manage a budget. However, life

isn’t predictable, and sometimes, structured payments just aren’t enough to pay off


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unanticipated expenses or fund opportunities that could substantially improve quality of life.

That’s why RSL Funding exists, to provide owners of structured settlements with the

opportunity to pursue their dreams or better their financial situation by selling their future

structured payments for cash when it is needed most.


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CHAPTER 2

WHY SELL A STRUCTURED SETTLEMENT?

The decision to sell a structured settlement should not be made lightly, and never without first

acquiring the proper knowledge about the process and your options. While there are a myriad

of practical reasons for selling a structured settlement, “because I want to,” shouldn’t be one of

them. Unfortunately, the structured settlement buying industry is rife with structured

settlement buyers whose only objective is to close a deal, steering customers in the wrong

direction.

In this section, you will learn about all the different opportunities available to sellers of

structured settlements as well as how to avoid selling your structured settlement when it isn’t

in your best interest.

REASONS TO SELL A STRUCTURED SETTLEMENT

The thought of selling a structured settlement is a great option – who wouldn’t want a cash

infusion in his or her life? But if that money were to be allocated in ways that wouldn’t provide

a long-term benefit to the seller, then the seller would have been better off keeping their

originally scheduled payments.

There are many great reasons for people to sell structured settlements; however, whether or

not any of those reasons are in your best interest depends entirely on your particular situation.


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This is why it is so crucial to ensure you choose a reputable buyer for your structured

settlement. A good structured settlement buyer will walk you through the process, evaluate

your individual situation, and provide you with the information you need to make the decision

that is best for you.

At RSL Funding, we’ve helped customers sell their structured settlements for a variety of

reasons that have shaped their futures in ways structured payments simply could not. The

following are examples of how past customers have sold structured settlements in order to

better their lives:

Gone back to school to train for a different or more lucrative career

Made a down payment on a new home

Paid off nagging debt that had been crippling household finances

Started a not-for-profit to help others in need

Invested in a business venture

Paid off medical bills from an unexpected illness

Pursued a lifelong dream of starting a business

If one – or several – of these examples reminds you of your own situation, sit down with a

qualified structured settlement buyer and discuss what options are available to you. If none of

the reasons above particularly resonate with why you want to sell your structured settlement,

it doesn’t mean your reason isn’t valid; it all depends on your personal circumstances and it is

still worthwhile to discuss your options with a professional structured settlement buyer, like

RSL Funding.


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REASONS NOT TO SELL A STRUCTURED SETTLEMENT

When deciding whether or not to sell your structured settlement, there is one question sellers

need to ask themselves, “Will selling my structured settlement improve my life in the long-

term?” The key phrase here is ‘long-term,’ as a shopping spree or expensive vacation can most

certainly improve one’s life in the short-term, but are not good reasons to sell a structured

settlement.

On the contrary, if you are receiving lottery winnings in the form of a structured settlement,

you may be able to sell your winnings for a lump sum payment for any reason. You’ve won the

lottery—why not use it for a well-deserved trip?

But back to the case of a structured settlement--you may be thinking, “it’s my money and I

should be able to choose how I spend it.” The fact is, a judge must sign off on the reason for

selling your structured settlement payments. The only reason a judge will allow you to sell is if

he or she believes it is in your best interest. For example, if your reason is you want to buy a

new sports car, even though you already have a car, a judge will typically not sign off on this.

However, if you don’t own a car and need to purchase one so that you can take a better-paying

job that where public transportation is non-existent, this could be considered a valid reason for

selling.

Another thing to consider is whether or not the lump sum payment will be of direct benefit to

you, the owner. Altruistic endeavors, such as helping out a family member in financial trouble,

may seem like an excellent reason to sell a structured settlement, but since the owner will not

be the direct beneficiary of the lump sum payment, it is less likely a judge will sign off on such

expenditures.


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At RSL Funding, the well-being of our customers is our #1 priority, and as such, if we believe

selling your structured settlement is not in your best interest, we will let you know help you

discover other options. The following are examples of instances in which we have counseled

customers against selling their structured settlements:

Performing home renovations for aesthetic purposes

Purchasing a new wardrobe

Buying a car for a child as a graduation present

Taking a year off work to travel the world

While many of these are noble and worthwhile expenditures, none of them provide a direct

benefit to the owner of the structured settlement or improve their quality of life in the long-

term.


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CHAPTER 3

PROS AND CONS OF SELLING A STRUCTURED

SETTLEMENT

Selling your structured settlement or annuity can have excellent and even life-changing

implications. Selling your payments can vastly improve your standard of living. But, there are

downsides to selling that each and every owner of a structured settlement or annuity needs to

be aware of before making the final decision. While it may seem that receiving a lump sum of

cash carries little downside, keep in mind that to receive that payment, you will be forgoing

future payments from your structured settlement when you decide to sell it in its entirety. In

essence, by selling a structured settlement or annuity, you are effectively ‘borrowing’ from your

future self.

With RSL Funding, you have the option to sell some payments, while leaving the remainder of

your scheduled payments intact.

When a customer comes to RSL Funding looking to sell their structured settlement, we make

sure they have a thorough understanding of the advantages as well as the drawbacks of their

decision. The following are the pros and cons of selling a structured settlement or annuity that

you need to be aware of before you make the decision to sell.

PROS OF SELLING A STRUCTURED SETTLEMENT

Immediate access to a large lump sum of cash that otherwise would have taken months or even years for you to receive


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The ability to invest in endeavors that can substantially improve your future prospects, such as credit card debt repayment and consequent credit repair, furthering of education, home ownership, business ventures, etc.

Relief from healthcare-related debt

Unlike a loan, the money you receive is yours and never has to be paid back

CONS OF SELLING A STRUCTURED SETTLEMENT

Once you receive a lump sum payment after selling all of your payments, you will no longer receive your structured payments1

Effectively managing a one-time, large infusion of cash is much more difficult than budgeting based on smaller, predictable structured payments

Certain unscrupulous structured settlement buyers will allow you to “sell” your structured settlement before a court has awarded you the settlement in what is called ‘pre-settlement funding’. If the judgment isn’t returned in your favor, you will end up owing back the money at exorbitantly high interest rates

As with any decision that will have a substantial impact on your life, selling a structured

settlement has its advantages and drawbacks. The best course of action is to work with a

structured settlement buyer you can trust and talk through the decision, considering your

particular circumstances and deciding whether or not the pros out-weigh the cons

1 In certain cases, structured payments can continue but at a much lower value. In these cases, only a portion of the structured settlement would have been sold and the remainder would continue to be paid out in structured payments


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CHAPTER 4

AVOIDING STRUCTURED SETTLEMENT FRAUD

In the structured settlement buying industry, as in most other industries, there are reputable

buyers looking out for the best interests of their customers and there are nefarious buyers

looking to profit at the expense of customers. It is these unscrupulous buyers that taint the

industry as a whole and scare some would-be sellers into forgoing the opportunities selling

their structured settlement could afford because they are afraid of being ‘scammed.’ While it

would be irresponsible to deny that structured settlement fraud exists in the industry, there is a

sure-fire way to avoid it: perform your due diligence and deal with a reputable structured

settlement buyer you trust.

WHAT IS STRUCTURED SETTLEMENT FRAUD?

Structured settlement fraud can appear in many forms, with the most common being dishonest

structured settlement buyers convincing customers it is in their best interest to lie to a judge

about the way they intend to spend their lump sum in order to gain approval for a sale that

never should have happened.

Actual cases of structured settlement fraud have ranged anywhere from simply misleading

judges as to how cash payments will be spent, to actually falsifying residential documents to

make it appear as though a seller lives in a state with laxer structured settlement selling laws,

when in fact they do not. At the time, these customers may have felt as though those buyers

were looking out for their customers. After all, they agreed to the buy structured settlement

payments no one else would. But in the long-term, many victims of structured settlement fraud

can find the results devastating.


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HOW CAN STRUCTURED SETTLEMENT FRAUD BE AVOIDED?

The best way to avoid structured settlement fraud is to work with a structured settlement

buyer with a good reputation. If the structured settlement buyer you’re working with glosses

over the ‘why’ and skips right to how much they can offer you, you’re definitely dealing with a

company concerned with their own interests, not yours.


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CHAPTER 5

THE STRUCTURED SETTLEMENT SELLING PROCESS

Many first-time structured settlement sellers are surprised to learn that selling their structured

settlement isn’t as easy as walking into an office and walking out with a check; however, the

process itself is not complicated and actually quite simple once you know what to expect.

The first step in the process is something you have most likely already done or are planning to

do – reach out to a structured settlement buyer to get a quote. At RSL Funding, we make it easy

for our customers to find out exactly how much they’re entitled to by either calling us directly

or filling out a quote form online.

Once you have a quote, the next step is to discuss your personal situation with the structured

settlement buyer and determine if selling your structured settlement is the right choice for you.

If you have a valid reason for selling your structured settlement that will improve your

circumstances, the company will agree to purchase your structured settlement.

Before the deal can be finalized, a state court must approve the transaction. If you are working

with a reputable structured settlement buyer, this simply means explaining to a judge your

reason for selling your structured settlement.

After a judge has signed off on the transaction, your structured settlement buyer will issue your

funds and you can put them towards improving your life. RSL Funding makes the transaction as

quick and easy for our customers as possible, typically completing the entire process from the

initial quote to receiving funds in 45-90 days, which is the industry standard.


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CHAPTER 6

WHY CHOOSE RSL FUNDING?

When selling your structured settlement to RSL Funding, you can rest assured you will get the

most money for your structured settlement. For years, RSL Funding has been helping customers

just like you to better their lives by selling structured settlements and annuities. We have

maintained an A+ rating from the Better Business Bureau and earned our reputation as one of

the most knowledgeable and trustworthy structured settlement buyers in the business. But

why take our word for it? Listen to what our customers have to say about us:

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“RSL Funding gave me an offer for $3,000 more than Stone Street. It was great!” – Aurora Z.,

Houston, TX

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“RSL Funding was professional…I would definitely recommend them in a second.” – R.C.,

Baltimore, MD

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“I saw a Peachtree commercial and called to sell a portion of my annuity. The guy with

Peachtree totally took advantage of my lack of knowledge in this field. RSL Funding (Derek)

came knocking and provided me with a much better deal…I would HIGHLY recommend Derek

and RSL Funding to anyone who is considering selling all or a portion of their structured

settlement. Their honesty and integrity was second to none.” – Alex M., College Station, TX

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“The team at RSL Funding made us feel like our needs were a top priority. They all worked to

help us get a bigger offer than any of the previous offers being thrown at us…RSL Funding will

be the first firm that will come to mind should we know of anyone that could benefit from their

excellent service.” – J. Johnson, Houston, TX


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“RSL Funding has been a lifesaver for me and my family. Because of them, I was able to keep my

house, my truck, and get myself out of debt. The account executive was very helpful and

understanding of my needs and the needs of my family. I will forever be grateful towards RSL

Funding.” - D. Jones, Houston, TX

Now that you know what to look out for, it’s time to make the call.

If you are currently receiving structured settlement, annuity, or lottery winning payments,

and would to sell them for a lump sum, reach us at 800-543-6513 today!


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This eBook was brought to you by:

RSL FUNDING, LLC

1980 POST OAK BLVD, SUITE 1975, HOUSTON, TX 77056

TEL: 713-850-0550 / TOLL FREE: 800-543-6513

EMAIL: [email protected]

WEBSITE: WWW.RSLFUNDING.COM

mailto:[email protected]

WWW.RSLFUNDING.COM

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