Straight Answers

Frequently asked questions

Whether you’re buying guaranteed income or selling payments you no longer need, here’s how it actually works — the law, the process, and what to expect. Can’t find your answer? Call 888-363-5252.

For Investors

Buying guaranteed income

Are these payments really guaranteed?+
Yes. The payments are court-ordered and remain the obligation of the original insurance carrier — typically A rated names. Your income depends on the carrier’s claims-paying ability, not on stock or bond markets. This is why we describe them as guaranteed fixed income.
What laws govern these transactions?+
Nearly every state — 49 of 50 — has enacted a Structured Settlement Protection Act requiring full disclosures and a judge’s approval before any payment stream changes hands. On the federal side, a 2002 law (IRC §5891) preserved the favorable tax treatment of court-approved transfers and imposes a punitive excise tax on any transfer completed without a court order. The result: this market runs through the courts, by design.
What happens if a transfer isn't approved by the court?+
The transaction simply doesn’t close — and it costs you nothing. No reputable funding company will close without the order, because federal tax law makes unapproved transfers economically ruinous. That’s a feature, not a risk: every stream we deliver arrives with a judge’s order behind it.
Am I buying an annuity?+
Not exactly. You’re acquiring the rights to specific payments under an existing annuity contract. The insurance carrier keeps paying exactly as scheduled — but to you, per the court order. That’s why the product is called a Secondary Market Annuity, and why the exact payment schedule appears on every one of our fact sheets.
How is my yield determined?+
You purchase the right to a fixed schedule of future payments at a discount to their total value. That discount produces your effective annual yield, which is locked the day you fund and does not change for the full term — regardless of what interest rates do afterward.
What's the difference between effective yield and APR?+
Effective annual yield is the compounded annual return of the payment schedule against your purchase price. APR states the same economics on a Truth-in-Lending basis, which is why it reads slightly lower. We publish both on every deal so you can compare apples to apples with any other fixed-income product.
Why is inventory so limited?+
Fewer than one in five structured settlement recipients ever sells a payment — industry estimates put it under 20%. Quality paper backed by A rated carriers is genuinely scarce, which is why our deals are often reserved within days of listing, and why we send offer sheets to our list before deals go public.
What's the minimum to get started?+
It varies by deal. Split portions can start in the single-digit thousands, while full streams range higher. Browse our live inventory to see current purchase prices, or call us and we’ll match you to something that fits your budget and timeline.
Can I use my IRA or retirement funds?+
Yes. We accept both qualified (IRA, 401(k) rollover) and non-qualified (cash) funds, and we work with one of the largest self-directed IRA companies in the country to make funding from a retirement account simple and seamless. Using a qualified account can allow your income stream to grow tax-deferred. We’re not tax advisors, so we’d encourage you to confirm specifics with yours.
What happens after I reserve a deal?+
We confirm availability, walk you through the paperwork, and the payment rights are formally assigned to you via the court-approved transfer. Once funded, payments arrive on the fixed schedule shown on the deal’s fact sheet. There’s no cost to reserve, and no cost to you if a transaction isn’t approved.
For Sellers

Selling your payments

Do I have to sell all of my payments?+
No — and most people don’t. The vast majority of transfers involve only a portion of a payment stream. If you need $40,000, sell what produces $40,000 and keep the rest arriving on schedule. We’ll help you size it so you don’t sell more than you need.
How long does the process take?+
Court approval typically takes 30 to 180 days depending on your state and the court’s calendar. Anyone promising cash “in two weeks” is misleading you — that’s not how a court-approved process works, and the promise itself is a red flag.
Is selling my payments a bad idea?+
Not if you know what you’re doing, why you’re doing it, and you’ve considered your options with good advice. A judge reviews every transfer to confirm it’s in your best interest — that review exists to protect you. And we’ll tell you honestly if we think you shouldn’t sell; relationships outlast transactions here.
Can I just borrow against my settlement instead?+
Banks almost never accept structured settlement payments as loan collateral — a pledge of payments is itself a transfer that requires court approval, and most lenders won’t take on that process. For most people, a court-approved sale of a portion of payments is the practical path to liquidity.
How is my offer determined?+
By the payment amounts and dates, the issuing carrier, and prevailing interest rates. Get more than one quote — we mean that. We’re confident enough in our pricing to encourage comparison, and we’ll work to beat any genuine written offer.
What will the court look at?+
The judge applies a best-interest standard: why you’re selling, what you’re receiving, the disclosures you were given, and your overall circumstances. Come prepared with a clear purpose for the funds. In some states you’ll also be advised to seek independent professional advice — we think that’s good practice everywhere.
Will I owe taxes on the lump sum?+
The 2002 federal law (IRC §5891) preserved the tax treatment of structured settlement payments when a transfer is court-approved — for most personal-injury settlements, that means the lump sum retains the tax-free character of the payments. Specifics depend on your settlement and circumstances, so confirm with your tax advisor.
What should I watch out for?+
Vague direct-mail letters that won’t say who sent them. Contracts that arrive before anyone has spoken with you. High-pressure tactics and artificial urgency. Promises of money in two weeks. Fees nobody will confirm in writing. See the Protect Yourself checklist on our Sell Your Payments page — it’s the advice we give even when it costs us a deal.

New to the terminology? Our plain-English glossary covers every term you’ll see on a fact sheet or in a court filing.

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