Selling your structured settlement is a serious financial decision. While a lump sum might solve short-term cash needs, choosing the wrong buyer can cost you tens of thousands of dollars. In this guide, you’ll learn how to evaluate structured settlement buyers based on discount rates, regulation, consumer safety, and trustworthiness.
What Is a Structured Settlement Buyer?
A structured settlement buyer is a company that offers to purchase your future annuity payments in exchange for a discounted lump sum today. These buyers operate in what’s known as the secondary annuity market.
Top Structured Settlement Buyers in 2025
| Company | Avg. Discount Rate | Funding Time | Licensed in Most States | BBB Rating |
|---|---|---|---|---|
| J.G. Wentworth | 9% – 15% | 2-3 weeks | Yes | A+ |
| Peachtree Financial | 8% – 14% | 2-4 weeks | Yes | A |
| Fairfield Funding | 10% – 18% | 3-5 weeks | Yes | A- |
Note: Rates are approximations based on 2024-2025 data from customer quotes and legal filings.
Know the Law: Key Regulations and Consumer Protections
Selling structured settlements is highly regulated to protect consumers. Every transaction must comply with the Structured Settlement Protection Act (SSPA) and state-specific laws.
Essential Requirements:
- Court Approval: A judge must decide if the sale is in your best interest.
- Cooling-Off Period: Most states allow 3-10 days to cancel after the sale is approved.
- Licensing: Buyers must be registered and licensed in your state.
- Disclosure: Full transparency about fees and discounts is required.
“Trading with a factoring company may lead to court approval delays” — CFPB Advisory
Interactive Tool: Lump Sum vs Total Value Calculator
Buyer Red Flags to Avoid
- No Court Filing Transparency
- Servicing Agreements — Your payments might be resold without your knowledge.
- Unlicensed Operations
- Hidden Fees — Ask for a breakdown before signing.
Real Voices: What Others Say
“They offered me $80,000 for $120,000 worth of payments. That 33% cut is insane, but I needed the cash.” — Reddit user
“The court took 6 weeks and asked me three times if I understood the risks.” — Former annuitant, Maryland
How to Choose the Best Buyer
✅ Must-Haves:
- Licensed in your state (ask for proof!)
- Low discount rate (<12% is competitive)
- Fast funding (under 3 weeks is standard)
- Positive BBB rating (A or better)
- Full legal disclosure and clear contract
Decision Path: Should You Sell?
Consider selling only if:
- You face high-interest debt or an urgent need (medical, legal, housing)
- You’ve consulted a lawyer or financial planner
- You’ve reviewed multiple quotes (at least 3 buyers)
FAQ – Structured Settlement Buyers
How much do buyers typically take?
Between 8% and 18% of your annuity’s present value, depending on the market and your contract.
Can I sell just part of my annuity?
Yes, many buyers offer partial sale options so you retain some future payments.
What happens if I regret selling?
After court approval, the sale is final. However, most states offer a brief cooling-off period (3-10 days).
Final Thoughts
Selling a structured settlement can be a lifeline or a loss trap. By choosing a well-regulated, transparent, and consumer-first buyer, you can minimize risk and maximize your return.
Use the calculator, compare companies, and never sign without understanding your long-term costs.