Purchasing a structured settlement means you buy the rights to someone else's future annuity payments (usually from a personal injury or wrongful death case) at a discount, in exchange for a lump sum upfront. You then collect the future payments over time — often at a fixed rate.
It's a form of secondary market annuity investing — used for predictable, steady income.
Top Companies That Facilitate Structured Settlement Purchases
1. Fairfield Funding
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Known for purchasing and selling structured settlement payment streams.
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Offers investor access to court-approved settlements.
2. DRB Capital
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Specializes in secondary market annuity investments.
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Handles court approval and compliance.
3. J.G. Wentworth
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Well-known brand in the structured settlement space.
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Mostly caters to sellers but has investment options through affiliates.
4. Annuity Straight Talk
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Boutique firm focused on secondary market annuity investing.
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Offers due diligence, insurance company background checks, and yield projections.
5. CBC Settlement Funding
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Purchases annuity payments and sometimes resells to investors.
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Court-ordered, bankruptcy-remote investments.
🛠️ How the Purchase Process Works
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Find Available Settlements
Work with a broker or investment platform to find structured settlements up for purchase. -
Review Payment Schedule & Insurance Carrier
Ensure the annuity is from a top-rated carrier (e.g., Prudential, MetLife, New York Life). -
Make an Offer
Buy the payment stream at a discount (your “yield” comes from the difference). -
Court Approval (in most cases)
The sale must be approved by a judge to protect the original annuitant. -
Transfer of Rights
Once approved, you begin receiving payments directly from the insurance company.
💸 Why Investors Buy Structured Settlements
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Fixed Income: Reliable, pre-determined payments.
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Above-Average Yields: Often 4%–6%+ yields, higher than typical annuities or bonds.
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Low Risk: Backed by large insurance companies, not market-dependent.
⚠️ Risks to Consider
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Liquidity: You can’t easily sell or change the payment stream later.
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Court Delays: Legal approval process can take time.
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Insurance Carrier Risk: Though unlikely, the insurance company could default — stick to A+ rated companies.
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Transfer Legality: Must comply with state structured settlement protection acts.
✅ Tips for Buying Structured Settlements Safely
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Work with a reputable broker who specializes in secondary annuity markets.
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Always request carrier ratings, court documents, and transfer approval paperwork.
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Avoid unknown or unlicensed brokers or unusually high-yield “too good to be true” deals.
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Consult with a financial advisor or attorney before committing funds.