Frequently Asked Questions

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Following is a list of questions that our team receives on a common basis. If your question isn’t addressed in this portion, please don’t hesitate to call or email us!

  • What is a Structured Settlement?       

Simply put, a structured settlement represents a financial arrangement in which a plaintiff in a personal injury or medical malpractice case accepts guaranteed periodic payments (rather than one lump sum) in order to settle their claim. People generally choose to receive a structured payment plan over a lump sum from their insurance company because the structured offer generally includes more money.

  • Do I need my insurance company’s permission to sell my structured settlement? 

The short answer is NO! Choosing to sell your structured settlement is your decision. Lump Sum Funder will make your insurance company aware of your intent to sell your payments and we will work with them to make the transaction as effortless as possible for you.

  • What are the tax consequences from selling my payments?

While Lump Sum Funder is not allowed to issue or offer any tax advice, the IRS issued a ruling in 1982 confirming that the sale of structured or annuitized payments in exchange for a lump sum would not create any tax consequences. For more information on the Periodic Payment Settlement Act or any other taxation of structured settlements, go to this page.

  • Why should I sell my structured settlement? 

The quick and easy answer is that you are in more need of funds than your structured settlement is able to provide at this time.

  • Can I Sell My Structured Settlement Payments As A Minor?

 Whether or not you will be permitted to sell your structured settlement payments as a minor will depend upon your Insurance Company.  Most insurance companies will not allow you to make a structured settlement transfer prior to the age of 18.  However, if you are under 18 and need to receive a lump sum of cash in exchange for your structured settlement payments, you can contact a representative from the insurance company sending you your current or future structured settlement payments.

  •      Can I Sell My Investment Annuity? 

The ability to sell your investment annuity depends on a few things.  First, what type of investment annuity are you receiving and second, what insurance company is issuing your investment annuity.  If you are receiving a single premium investment annuity from a company that will allow you to change the owner and beneficiary of the annuity, you should be able to sell your payments in exchange for a lump sum of money.    The process of selling an investment annuity is often faster than selling a structured settlement as a hearing and court order are not required.

  •       Am I Required to Tell My Spouse About My Transfer?

If you are legally married and are in the process of completing a structured settlement payment transfer, you will need your spouse’s signature.  All structured settlement transfer companies will require that your spouse be aware of and approve of your transfer.  This will be evidenced by a spousal consent form your spouse will be asked to sign.  Spouses are informed of transfers because by law, they are an interested party to your transfer.

  •       How long will it take to complete the sale of structured settlement payments?

The standard transfer takes approximately 30 – 60 days to complete.  The exact time frame will depend on your insurance company and your state.

  •       Can I sell only a portion of my structured settlement payments? 

Absolutely.  At Lump Sum Funder we pride ourselves on our ability to create the perfect transaction for you.  If you need to maintain a portion of your monthly or lump sum payment we will make it happen while still getting you the lump sum you need now.

  •      Can I get an advance?

Yes.  Our clients are eligible for advances in as little as five days after their file is complete and we have confirmed the availability and assignability of the payments to be sold.

  •       Can I sell life contingent structured settlement payments?

You can most definitely sell life contingent structured settlement payments.  We are experts at getting you the cash you need for payments that are life contingent.

  •      Why do people sell their structured settlements?

Our clients come to us to assist them in successfully selling their structured settlement payments for various reasons.  Some of the more common reasons for wanting to sell structured settlement payments are to pay for school, purchase a home, purchase a vehicle, pay off debt, pay medical expenses, make home repairs or prepare for a growing family.  Whatever the reason for selling is, we are here to help you get the money you need now.

  •       Can I sell lottery payments?

Lottery payments can be sold much like structured settlement payments.  If you are receiving lottery payments from your state overtime, call our office so we can help you sell all or a portion of those payments in exchange for a lump sum.

  •      How is the lump sum payment given to me if I sell my payments?

If you complete a transaction with Fairfield Funding we can pay you your lump sum of cash by check made payable to you or by a wire transfer.  We will do whatever is the easiest and most convenient for you.

  •     How much money should I expect to receive? 

There are several different variables that influence exactly how much money your settlement is worth at this moment. The financial professionals at Lump Sum Funder will work with you to maximize the amount funds that your can expect to receive in a responsible manner.

  •    Is Lump Sum Funder a direct funder?

Yes we are.

If your question hasn’t been answered in the above portion, please don’t hesitate to call our team of professionals and we will walk you through any issues you have.