EVERYTHING YOU NEED TO KNOW ABOUT SELLING YOUR STRUCTURED SETTLEMENT. RSL Funding

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1 EVERYTHING YOU NEED TO KNOW ABOUT SELLING YOUR STRUCTURED SETTLEMENT RSL Funding

2 Table of Contents Preface... 3 What is a Structured Settlement?... 4 Why Sell a Structured Settlement?... 5 Reasons to Sell a Structured Settlement... 5 Reasons Not to Sell a Structured Settlement... 6 Pros and Cons of Selling a Structured Settlement... 8 Pros of Selling a Structured Settlement... 8 Cons of Selling a Structured Settlement... 8 Avoiding Structured Settlement Fraud What is Structured Settlement Fraud? How Can Structured Settlement Fraud Be Avoided? The Structured Settlement Selling Process Why Choose RSL Funding?... 12

3 Preface If you are considering selling your structured settlement or annuity, congratulate yourself on taking the most important step in the process by reading this ebook getting the knowledge you need to make the best decision. Selling a structured settlement can be one of the biggest decisions of your life. If done for the right reasons, you can substantially improve your circumstances and be much better off in the long run; however, if done for the wrong reasons, it can have a devastating effect on your future financial prospects. The best way to determine if selling a structured settlement is the right decision for you is to get the knowledge you need to fully understand the process and the options available to you. Reading this ebook is the perfect first step in acquiring the knowledge you ll need to act in your own best interest. After reading this ebook, you ll be armed with the education to deal effectively with structured settlement buyers and ensure you receive the most money you re entitled to. At RSL Funding, we pride ourselves on approaching structured settlement buying from a different perspective than our competitors. While many structured settlement buyers operate on a volume- based business model and are eager to process transactions regardless of the impact on customers, we focus on the quality of our service and ensure our customers only sell if it is the best possible decision for their particular circumstances. Unfortunately, we ve found that more often than not, these unscrupulous competitors are able to take advantage of unsuspecting customers who don t realize the mistake they ve made until it s too late. That s why we wrote this ebook. We want to make sure everyone who considers selling their structured settlement or annuity has the information they need to make an informed, intelligent decision. After reading this ebook, you will have the information and insight to successfully navigate the structured settlement buying industry and make the choice that best serves your interests.

4 What is a Structured Settlement? In the most general terms, a structured settlement refers to a set of scheduled payments from one party to another. Typically, a structured settlement is established after one party successfully sues another in court and the other party is ordered to pay a specific, usually large, sum. Instead of receiving a lump sum, the winning party is awarded a structured settlement, which means the amount will be paid out in equal installments over the course of a set period of time. A structured settlement is different from an annuity, which is an insurance product the owner has purchased that pays out a structured amount over a set period of time based on the original amount invested and any additional investments made by the purchaser. Annuities are typically used as part of a retirement strategy, where money is saved and invested throughout the purchaser s working years and then paid back in installments once the purchaser retires. Receiving a structured settlement can provide a certain sense of security to the recipient; after all, dependable, recurring payments are an easy way to set and manage a budget. However, life isn t predictable, and sometimes, structured payments just aren t enough to pay off unanticipated expenses or fund opportunities that could substantially improve quality of life. That s why RSL Funding exists, to provide owners of structured settlements with the opportunity to pursue their dreams or better their financial situation by selling their future structured payments for cash now.

5 Why Sell a Structured Settlement? The decision to sell a structured settlement should not be made lightly, and never without first acquiring the proper knowledge about the process and your options. While there are myriad practical reasons for selling a structured settlement, because I want to, is definitely not one of them. Unfortunately, the structured settlement buying industry is rife with structured settlement buyers whose only objective is to close a deal, not help their customers make the best decision for them. In this section, you will learn about all the different opportunities available to sellers of structured settlements as well as how to avoid selling your structured settlement when it is not in your best interest. Reasons to Sell a Structured Settlement The thought of selling a structured settlement is appealing to anyone who wouldn t want a sudden cash infusion in his or her life? But if that money were to be allocated in ways that won t provide a long- term benefit to the seller, then the seller would have been better off keeping their structured payments. There are many great reasons for people to sell structured settlements; however, whether or not any of those reasons are in your best interest depends entirely on your particular situation and circumstances. This is why it is so crucial to ensure you choose a reputable buyer for your structured settlement. If a structured settlement buyer truly has your best interests at heart, they will walk you through the process, evaluate your individual situation, and provide you with the information you need to make the decision that is best for you. The structured settlement buyers that skip the education and jump right into how much you can get are the ones to be wary of. A RSL Funding, we ve helped customers sell their structured settlements for a variety of reasons that have shaped their futures in ways structured payments simply could not. The following are examples of how past customers have sold structured settlements in order to better their lives: Gone back to school to train for a different or more lucrative career Made a down payment on a new home Paid off nagging debt that had been crippling household finances Started a not- for- profit to help others in need Invested in a business venture Paid off medical bills from an unexpected illness Pursued a lifelong dream of starting a business If one or several of these examples reminds you of your own situation, it is in your best interest to sit down with a qualified structured settlement buyer and discuss what options are available to you. If none of the reasons above particularly resonate with why you want to sell your structured settlement, it doesn t mean your reason isn t valid; it all depends on your personal circumstances and it is still worthwhile to discuss your options with a professional structured settlement buyer.

6 However, in some cases your reason for wanting to sell your structured settlement may not be in your best interest. A reputable structured settlement buyer will tell you so while an unscrupulous structured settlement buyer will try and push the deal through no matter what your motivations, potentially leaving you worse off in the long- term. Reasons Not to Sell a Structured Settlement When deciding whether or not to sell your structured settlement, there is one question sellers needs to ask themselves, will selling my structured settlement improve my life in the long- term? The key word is long- term, as a shopping spree or expensive vacation can most certainly improve one s life in the short- term, but are not good reasons to sell a structured settlement. While you may be thinking, it s my money, I should be able to choose how I spend it, the fact is, before selling a structured settlement, a judge must sign off on your reason for selling. The only reason a judge will allow you to sell your structured settlement is if he or she believes it is in your best interest. For instance, if your reason for selling your structured settlement is that you want to buy a new sports car, even though you already have a car, a judge will typically not sign off on this. However, if you don t own a car and need to purchase one so that you can take a better- paying job requiring ownership of a car, this would be considered a valid reason for selling. Another thing to consider when deciding whether or not to sell your structured settlement is whether or not the lump sum payment will be of direct benefit to you, the owner. Altruistic endeavors, such as helping out a family member in financial trouble, may seem like an excellent reason to sell a structured settlement, but since the owner will not be the direct beneficiary of the lump sum payment, it is unlikely that a judge will sign off on such expenditures. At RSL Funding, the wellbeing of our customers is our number one priority, and as such, if we believe selling your structured settlement is not in your best interest we will tell you and help you find other options. The following are examples of instances in which we have counseled customers against selling their structured settlements: Performing home renovations for aesthetic purposes Purchasing a new wardrobe Buying a car for a child as a graduation present Paying off medical bills for a family member Taking a year off work to travel the world While many of these are noble and worthwhile expenditures, none of them provide a direct benefit to the owner of the structured settlement that will improve their

7 quality of life in the long- term, and therefore are not valid reasons for selling a structured settlement.

8 Pros and Cons of Selling a Structured Settlement Selling your structured settlement or annuity can have life- changing implications and vastly improve your standard of living; however, there are downsides to selling that each and every owner of a structured settlement or annuity needs to be aware of before making the final decision. While it may seem that receiving a lump sum of cash carries little downside, keep in mind that to receive that payment you will be forgoing future payments from your structured settlement. In essence, by selling a structured settlement or annuity, you are effectively borrowing from your future self, which is why it is essential the money be put towards endeavors that will raise your standard of living and not leave you worse off in the long- term. When a customer comes to RSL Funding looking to sell their structured settlement, we make sure they have a thorough understanding of the advantages as well as the drawbacks of their decision. The following are the pros and cons of selling a structured settlement or annuity that you need to be aware of before you make the decision to sell. Pros of Selling a Structured Settlement Immediate access to a large lump sum of cash that otherwise would have taken years for you to receive The ability to invest in endeavors that can substantially improve your future prospects, such as further education, home ownership, business ventures, etc. Access to a large sum of cash that can raise your living standards immediately by paying off nagging debt or purchasing a car to secure a better job Relief from debt (either from unexpected medical expenses or otherwise) that is crippling your disposable income and hindering you from moving forward Unlike a loan, the money you receive is yours and never has to be paid back Cons of Selling a Structured Settlement Once you receive a lump sum payment, you will no longer receive your structured payments 1 Effectively managing a one- time, large infusion of cash is much more difficult than budgeting based on smaller, predictable structured payments Certain unscrupulous structured settlement buyers will allow you to sell your structured settlement before a court has awarded you the settlement in what is called pre- settlement funding ; if the judgment isn t returned in your favor, you will end up owing back the money at exorbitantly high interest rates 1 In certain cases, structured payments can continue but at a much lower value. In these cases, only a portion of the structured settlement would have been sold and the remainder would continue to be paid out in structured payments

9 As with any decision that will have a substantial impact on your life, selling a structured settlement has its advantages and drawbacks. The best course of action is to work with a structured settlement buyer you can trust and talk through the decision, considering your particular circumstances and deciding whether or not the pros out- weigh the cons.

10 Avoiding Structured Settlement Fraud In the structured settlement buying industry, as in most other industries, there are reputable buyers looking out for the best interests of their customers and there are nefarious buyers looking to profit at the expense of customers. It is these unscrupulous buyers that taint the industry as a whole and scare some would- be sellers into forgoing the opportunities selling their structured settlement could afford because they are afraid of being scammed. While it would be irresponsible to deny that structured settlement fraud exists in the industry, there is a sure- fire way to avoid structured settlement fraud: perform your due diligence and deal with a reputable structured settlement buyer you trust. What is Structured Settlement Fraud? Structured settlement fraud can appear in many forms, with the most common being dishonest structured settlement buyers convincing customers it is in their best interest to lie to a judge about the way they intend to spend their lump sum in order to gain approval for a sale that never should have happened. Actual cases of structured settlement fraud have ranged anywhere from simply misleading judges as to how cash payments will be spent, to actually falsifying residential documents to make it appear as though a seller lives in a state with laxer structured settlement selling laws, when in fact they do not. At the time, these customers may have felt as though those buyers were acting in their best interest after all, they agreed to buy structured settlements no one else would but in the long- term, many victims of structured settlement fraud can find the results devastating. How Can Structured Settlement Fraud Be Avoided? The best way to avoid structured settlement fraud is to deal with a reputable structured settlement buyer that is looking out for your best interests. A reputable structured settlement buyer will ask you questions about your personal circumstances and why you would like to sell. If the structured settlement buyer you re dealing with glosses over the why and skips right to how much they can offer you, you re definitely dealing with a company concerned with their own interests, not yours.

11 The Structured Settlement Selling Process Many first- time structured settlement sellers are surprised to learn that selling their structured settlement isn t as easy as walking into an office and walking out with a check; however, the process itself is not complicated and actually quite simple once you know what to expect. The first step in the process is something you have most likely already done or are planning to do reach out to a structured settlement buyer to get a quote. At RSL Funding, we make it easy for our customers to find out exactly how much they re entitled to by either calling us directly or filling out a quote form online. Once you have a quote, the next step is to discuss your personal situation with the structured settlement buyer and determine if selling your structured settlement is the right choice for you. If you have a valid reason for selling your structured settlement that will improve your circumstances, the company will agree to purchase your structured settlement. Before the deal can be finalized, a state court must approve the transaction. If you are dealing with a reputable structured settlement buyer, this simply means explaining to a judge your reason for selling your structured settlement. If the structured settlement buyer you are dealing with encourages you to exaggerate or lie about your circumstances, watch out. If you find yourself in this situation, seek out a second opinion from another structured settlement buyer; it may be that it wasn t in your best interest to sell in the first place. After a judge has signed off on the transaction, your structured settlement buyer will issue your funds and you can put them towards improving your life. RSL Funding makes the transaction as quick and easy for our customers as possible, typically completing the entire process from the initial quote to receiving funds in as little as six to eight weeks.

12 Why Choose RSL Funding? When selling your structured settlement to RSL Funding, you can rest assured you are dealing with a reputable company who will not only act in your best interest but also provide you with the most money for your structured settlement. For over 30 years, RSL Funding has been helping customers just like you to better their lives by selling structured settlements and annuities. We have maintained an A+ rating from the Better Business Bureau and earned our reputation as one of the most knowledgeable and trustworthy structured settlement buyers in the business. But why take our word for it, why not listen to what our customers have to say about us: RSL Funding gave me an offer for $3,000 more than Stone Street. It was great! Aurora Z., Houston, TX RSL Funding was professional I would definitely recommend them in a second. R.C., Baltimore, MD I saw a Peachtree commercial and called to sell a portion of my annuity. The guy with Peachtree totally took advantage of my lack of knowledge in this field. RSL Funding (Derek) came knocking and provided me with a much better deal I would HIGHLY recommend Derek and RSL Funding to anyone who is considering selling all or a portion of their structured settlement. Their honesty and integrity was second to none. Alex M., College Station, TX The team at RSL Funding made us feel like our needs were a top priority. They all worked to help us get a bigger offer than any of the previous offers being thrown at us RSL Funding will be the first firm that will come to mind should we know of anyone that could benefit from their excellent service. J. Johnson, Houston, TX RSL Funding has been a lifesaver for me and my family. Because of them, I was able to keep my house, my truck, and get myself out of debt. The account executive was very helpful and understanding of my needs and the needs of my family. I will forever be grateful towards RSL Funding. - D. Jones, Houston, TX