If you add up all your settlement payments and figured your settlement is worth that amount today, you might be disappointed with the amount the broker will offer you.

Your structure came about because a certain amount of money was put into an annuity and then that principal, together with the interest is paid out over a period of time.

(for example: $1,000. invested at 7.2% will double in 10 years, meaning if your payments adds up to $2,000. over 10 years only $1000.or an amount less than the $2000. was paid to buy that benefit.) So when you speak to a broker, it may look like you are getting less than the sum of your payments.

Simpler answer: the present value (today's value) that's the $1000. will be discounted to cover costs to do the deal and the rest is sent to you. I know it's confusing, It took me awhile to understand, when it was first explained to me.

How long will it take to get my money?

You may have been told by others, 3 days,a week to 10 days. Not true - this is to get you to committed to them. Truth is - 3 weeks to 2 months or longer - it depends on a number of things:

a. The Insurance Company - (both issuer and owner of the annuity) - some companies are very difficult to deal with as you may have already experienced.

b. UPDATE: ALL STATES NOW NEED COURT ORDERS.

New law makes all structured settlement payment sales subject to a court order. If no court order, a tax equal to 40 percent will have to paid on the total amount of payments being sold. This is good, making selling your settlement safer. (For more information click here.)

c. Do you have monthly, quarterly, Semi or annual payment or are they lump sum payments? Different funders have different requirements and it is important for your broker to know those requirements. You will be able to obtain your money sooner with a lot less frustration if you have a knowledgeable broker.

d. Is your Insurance Company an impaired rated company? - most funders sell off these cashflows or settlements much like mortgages to large Wall St. type financial companies. They buy these settlements in large blocks of a million dollars or more. These companies tend only to be interested in A+ rated ins. company backed annuities. So the Funder may have to hold the settlements of lower rated ins. companies or sell them off at a lower profit margin, therefore a lower price to you

e. All the above applys to pricing plus having the necessary documention such as a copies of the following: The annuity, the settlement agreement and release, photo ID, recent check and application. see Structured Settlements

The above are a few of the considerations, there are more, but I think you get the idea.

How do I get the best deal?

If you are dealing with the wrong people can mean some tricky game playing for example: A practise known as (low balling). You are offered a quote much higher than others have offered you. Then the closing is drag out and they come back at a later date saying they can't do the deal as is and ask for for more money. All the while keeping you out of the market place.
Another: You are offer an amount. Then later you are charge the attorney and filing fees.
If you see ads saying " we are a direct funder and you will get more for your money, they have a retail price (for the general public)and a wholesale price. Only established brokers can get the wholesale price. And getting a good wholesale prices isn't always easy.

Check to see if there have been any lawsuits against the the company you are dealing with. Check the Dept. of Consumer Affairs in the State or City where the company is located.