Selling Structured Settlement Payments - In a Nutshell

Basically what you need to know for selling structured settlement payments is this...

Click the below to Jump Down to the appropriate categories -

Qualified Assignments

Non-qualified Assignments

Personal injury structured settlement insurance

Workers' Comp structured settlement

Cost of selling

Tax consequences of structured settlement sales

Qualified vs Non-Qualified Structured Settlements

For a start, there are essentially 2 primary different structured settlements, known as Qualified Assignments and Non-Qualified Assignments.

The Qualified structured settlements are those that are not taxable, i.e. personal injury structured settlement insurance, as well as Workers' Compensation structured settlements.

I'll explain below the basics that you to know for them in a nutshell.

Then, there are many other kinds of structured settlements categorized as Non-Qualified Assignments. They are taxable.

Let me explain the Qualified structured settlements here...

Lawsuit structured settlement

If it's for a personal injury, like an auto accident, then structured settlement helps to exempt you from tax for the compensation as well as capital gains on it.

Selling your structured settlement won't change that.

You'll get the benefit of a lump sum. But you'll get less for the structured settlement sales than you would have received in future payments, understandably so, as the value of money falls with time, AND the buyout company wants a profit for buying it from you for cash.

Workers' Comp Structured Settlement

Selling workers' compensation structured settlement payments is a different story. They may be sold by certain conditions.

If you have been injured at the workplace and set up a workers' compensation structured settlement insurance that you want to sell for a lump sum now, give me a call to discuss.

Workers' compensation structured settlement payments are not taxable either, so in cases that you do meet the requirement to sell payments, the money that you get for cashing it out will also not be taxable. But this is just for the information, not advice, and to be sure consult a tax professional.

Again, you'll get paid at a discount when selling structured settlement payments of workers' compensation annuities.

What's the Cost for Selling Structured Settlement Payments?

OK, in a nutshell, you'll "pay" a price. Thus, when selling your structured settlement payments, you'll NOT get their future's worth.


Two simple reasons:

  • Your money will be higher valued in years from now. Now, however, they are in fact worth less. That's the law of Time Value of Money.

Read more about discount rates for structured settlement payouts here.

To get a free quote from me to cash out your structured settlement payments for a lump sum, click here.

  • The structured settlement buyer is going to work for you, hire lawyers, pay you cash / a check - but at a cost. You need to "pay" for this.

This is why you'll get way less in a structured settlement cash out than you would get from your future payments.

Selling structured settlement - tax consequences

Actually, I have already addressed this in a nutshell at the beginning of this article, but to wrap it up...

  • You don't pay taxes for cashing in qualified structured settlements, such as -
  1. personal injury structured settlement insurance
  2. workers' comp structured settlement payments
  • You DO pay taxes for selling structured settlement payments of Non-Qualified Assignments.

Click here for more on tax consequences when cashing structured settlement payments.

To Sell Your Structured Settlement Contact Me Or Call 1-800-355-5657. Ask for a Free Quote. No Obligation.

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