Structured settlement companies provide people with cash from structured settlement agreements arising from legal claims. The legal system of the U.S. has promoted structured settlements since the 1980s, which are commonly used to voluntarily settle personal injury claims. One drawback to structured settlements is the payments can’t be changed. Structured settlement companies solve this problem by allowing people to turn their future payments into a single upfront cash payment.
We reviewed 20 purchasers of structured settlements to identify the best structured settlement companies based on industry accreditation, customer service, payment terms, and more. All of these companies are members of the National Association of Settlement Purchasers, offer customized solutions, and are reputable.
The 6 Best Structured Settlement Companies of 2020
Best Overall: Fairfield Funding
Fairfield Funding is a structured settlement company headquartered in Georgia. Not only does the company buy structured settlements, but it also purchases annuities and lottery payment streams, as well. Fairfield Funding is a Better Business Bureau (BBB)-accredited business with an A+ rating and 5-star customer reviews. We chose Fairfield Funding as our best overall structured settlement company based on its solid reputation, price guarantee, and overall level of transparency.
As with the other providers we reviewed, you need to contact Fairfield Funding for a pricing and terms quote. You can expect to have your structured settlement discounted by 6% to 18% per year, similar to being charged an interest rate. No other provider on our list offered this type of pricing estimate.
Fairfield Funding provides a 100% guarantee that it will beat competitor offers and close your deal as quickly as allowed by law. While you may be able to get a cash advance from Fairfield Funding in as few as five days, you should expect the entire process of selling your settlement to take around 45 to 90 days, depending on what’s required by law. This is a reasonable timeframe that you can expect from other providers as well.
Runner-Up, Best Overall: DRB Capital
DRB Capital is a structured settlement company headquartered in Florida. The company purchases structured settlements and annuities and it also offers pre-settlement funding. A BBB-accredited business, DRB Capital has an A+ rating and 4-star customer reviews. We chose DRB Capital as our runner-up for the best overall structured settlement company based on its good reputation, pre-settlement funding speed, and dedicated customer service team.
As with the other companies on our list, you’ll need to contact DRB Capital for a free pricing and terms quote. DRB Capital provides a guarantee that it will get you the most possible cash.
You’ll be assigned a dedicated account representative for the entire structured settlement process. Plus, DRB Capital offers pre-settlement funding in most states for certain types of cases (e.g., auto accidents and medical malpractice) that doesn’t need to be repaid if you lose your case. Pre-settlement funding can be secured within 24 hours after the company receives your documents. Make sure to review your agreement carefully, so you understand all the possible fees.
Best Customer Service: Peachtree Financial Solutions
Peachtree Financial Solutions is a structured settlement company headquartered in Pennsylvania that purchases structured settlements, annuities, and lottery payments. The company is a BBB-accredited business with an A+ rating and 5-star customer reviews. We chose Peachtree Financial Solutions as a structured settlement company with the best customer service based on its stellar reputation for customer service experience, which includes assigning you a dedicated account representative.
As with the other companies we reviewed, you’ll need to contact Peachtree Financial Solutions for a quote on pricing and terms. When you contact your customer service representative, they’ll talk through the details of your structured settlement with you and build you a no-obligation quote customized to fit your needs.
Peachtree Financial Solutions also offers non-recourse pre-settlement funding for some types of claims (e.g., personal injury), with funding in as soon as one day after approval. Since the pre-settlement funding is non-recourse, you won’t have to repay the advance if you lose your case. Peachtree won't charge you a fine if you lose, as some other companies do.
Best for Flexible Terms: J.G. Wentworth
J.G. Wentworth is a structured settlement company headquartered in Pennsylvania. The company not only purchases structured settlements, annuities, and lottery payments, but also offers debt relief solutions. Plus, J.G. Wentworth offers non-recourse pre-settlement funding for certain types of claims (e.g., personal injury) and can get you funded within a couple of days of finalizing your agreement.
As with the other companies we reviewed, you’ll need to contact J.G. Wentworth to get a customized pricing and terms quote. We chose J.G. Wentworth as a structured settlement company that’s best for flexible terms because every customer gets a solution tailored to their specific needs.
As an accredited BBB business, J.G. Wentworth has an A+ rating but has low 2-star customer reviews. Customer complaints and negative reviews were primarily related to advertising and sales, along with issues related to the company’s offerings. As you should with any such service provider, make sure to carefully review the terms of your agreement, obtain quotes from other companies, and get everything in writing. Understanding what you’re getting into—and having it in writing—will help you avoid problems down the road.
Best for Quick Settlements: Annuity Transfers
Annuity Transfers is headquartered in Texas and is a structured settlement company that purchases both structured settlements and annuities. The company is a BBB-accredited business with an A+ rating. While no customers have left BBB reviews, there also aren’t any complaints. The structured settlement process typically takes about eight weeks, but Annuity Transfers can get you funded within three days of court approval. For this reason, we chose Annuity Transfers as a structured settlement company best for quick settlements.
As with the other structured settlement companies we reviewed, you’ll need to reach out to Annuity Transfers for a customized pricing and terms quote. The company is focused on earning its customers’ trust and providing fair solutions. Annuity Transfers will respond to online inquiries within four hours, or you can speak with a representative immediately by calling 1-888-638-0900. None of the other companies we reviewed advertised such quick response times.
Best for Quick Pre-Settlement Approval: Liberty Settlement Funding
Liberty Settlement Funding (a.k.a. Liberty Settlement Solutions, LLC) is a structured settlement company headquartered in Florida that purchases structured settlements, annuities, and lottery payments, and also offers pre-settlement funding. The company is an accredited BBB business, with an A+ rating and 3.5-star customer reviews. We chose Liberty Settlement Funding as a structured settlement company best for quick pre-settlement approval since you can get approved and funded in as little as 24 hours.
Just like the other structured settlement companies we reviewed, you’ll need to contact Liberty Settlement Funding to get a pricing and terms quote. The company offers pre-settlement funding that’s customized to fit your needs for a variety of cases (e.g., vehicle accidents, work injuries). Liberty can get you funded quickly—often within a day—and doesn’t require you to pay back the advance if you lose your case. Remember, read the terms of your agreement carefully to make sure you understand any potential fees.
What Is a Structured Settlement Company?
Structured settlements have been used in the legal system of the United States since the 1980s to encourage the voluntary settlement of claims. The payments agreed upon in a structured settlement can’t be changed, but settlements can be sold (in-full or in-part) at a discounted amount to a structured settlement company in exchange for upfront cash. Some of the reasons people need to sell their structured settlements are to pay off debt, cover medical or educational expenses, buy or renovate a house, or even start a business.
How Do Structured Settlements Work?
Structured settlements are streams of tax-free payment that victims receive from defendants in lawsuits, typically in the form of an annuity issued by a reputable life insurance company (such as AIG). Sometimes, instead of accepting their payments over time, people need immediate cash and solve this problem by selling some or all of their future structured settlement payments at a discount to a structured settlement purchaser. By selling the structured settlement, they’re giving up the future payments they would have received under the original agreement.
How Much Do Structured Settlements Cost?
When people sell their structured settlement, the value of their future payments is discounted (or decreased) by a pre-set interest rate in order to determine what they're worth today. The rate at which these payments are discounted is called the discount rate (similar to an interest rate). This rate represents the primary structured settlement cost of sale and typically ranges from 9% to 18%. However, the exact cost will depend on such things as the duration of the structured settlement agreement, how much of the structured settlement payment stream is sold, and more.
Is a Structured Settlement Worth The Cost?
People might sell their structured settlements if they need quicker payment than is provided in their settlement. The cost of doing so may be worth it if the cash allows them to achieve their personal goals or address immediate needs. However, there are also risks involved with selling a settlement, so it’s important for people to do their research and only sell the amount they need.
How We Chose Structured Settlement Companies
We reviewed 20 purchasers of structured settlements to identify the best structured settlement companies. Our primary requirement was the companies be members of the National Association of Settlement Purchasers (NASP), a reputable trade association that is focused on industry fairness, competitiveness, and transparency. All the companies on our list are NASP members. In addition, the structured settlement companies we identified are reputable and offer customized structured settlement solutions.
National Association of Settlement Purchasers (NASP). "Settlement Options." Accessed June 4, 2020.
National Association of Settlement Purchasers (NASP). "Benefits of the Secondary Market." Accessed June 4, 2020.
National Association of Settlement Purchasers (NASP). "Protect Yourself." Accessed June 4, 2020.
Consumer Finance Protection Bureau (CFPB). "What Should I Know Before Giving Up My Monthly Disability, Personal Injury, or Structured Settlement Payments in Exchange for a One-Time Lump Sum Payment?". Accessed June 4, 2020.
National Association of Settlement Purchasers (NASP). "Secondary Market FAQ." Accessed June 4, 2020.
National Association of Settlement Providers (NASP). "Benefits of the Secondary Market." Accessed June 4, 2020.
National Association of Settlement Purchasers (NASP). "About." Accessed June 4, 2020.
National Association of Settlement Purchasers (NASP). "Find a NASP Member." Accessed June 4, 2020.