Q: How does the process work, from start to finish?

Three steps, and we handle most of the work.Step one: you talk to a dedicated AAN specialist by phone, share some basics about your settlement, and get a free, no-obligation quote.Step two: if you move forward, we prepare the paperwork, work with the insurance company that pays you, and file for approval.Step three: once approved and the transaction funds, your cash is wired or mailed to you. The same specialist stays with you the whole way — no being passed around.

Q: What are the tax implications of exchanging my structured settlement payments?

According to the IRS website – For structured settlement payments from a personal-injury settlement, the answer is generally no tax — and that doesn’t change whether you keep them or sell them. The underlying settlement is tax-exempt under federal law, and most courts and the IRS treat the sale the same way, so the tax-free protection follows the settlement, not your decision to convert payments to cash. The rules can be different for workers’ compensation, certain employment settlements, and a few state-specific situations. We are not tax advisors — before you finalize anything, talk to a CPA or tax professional about your specific settlement. Your specialist can flag the questions to ask.

Question 1

What does it mean to access your payments?

Accepted Answer

Exchanging your structured settlement payments means trading some or all of your future scheduled payments to a buyer like Annuity Action Network for a lump sum of cash now. It is not a loan — there is nothing to pay back. The payments you sold go to the buyer; any payments you kept continue coming to you on schedule. It’s a way to put settlement money you’ve already been awarded to work today, instead of waiting years for it to arrive.

Question 2

Can I exchange only part of my payments, or do I have to exchange all of them?

Accepted Answer

You have options. You can convert all your remaining future payments into the largest possible lump sum, access a specific dollar amount and keep the rest of your future income, or cash out a set period of payments and have your full payments resume after that. Most people don’t cash out everything—they access only what they need. Your AAN specialist will walk you through each option so you can pick the one that fits your situation.

Question 3

How does the process work, from start to finish?

Accepted Answer

Three steps, and we handle most of the work.
Step one: you talk to a dedicated AAN specialist by phone, share some basics about your settlement, and get a free, no-obligation quote.
Step two: if you move forward, we prepare the paperwork, work with the insurance company that pays you, and file for approval.
Step three: once approved and the transaction funds, your cash is wired or mailed to you. The same specialist stays with you the whole way — no being passed around.

Question 4

What paperwork and approvals are needed?

Accepted Answer

You’ll typically need your original structured settlement agreement, the annuity policy or benefits letter that documents your payments, a government-issued ID, proof of address, and basic financial information. Because every structured settlement sale requires a formal approval process, you’ll also need to attend (or appear by phone or video, where allowed) a brief hearing. We prepare the legal paperwork, coordinate the process, and walk you through every step. You don’t have to figure any of this out alone—that’s what your specialist is for.

Question 5

Why does a court need to approve the sale?

Accepted Answer

Federal and state laws require it. The Structured Settlement Protection Act — and equivalent state laws — require a revision of your proposed sale to confirm it’s in your best interest and that you understand what you’re giving up. They look at your reasons for selling, the value you’re receiving, and your overall situation. It’s a consumer protection, not a hurdle — and it’s why working with an experienced buyer matters. We’ve handled this process thousands of times.

Question 6

How long does it take to get my cash?

Accepted Answer

The realistic timeline is 45-60 days from signed paperwork to funding. The biggest driver is the mandatory process — most states require a waiting period between filing and the hearing, plus time for their decision and the funding period after approval. We move every step we control as fast as we can; court calendars are out of our hands. Your specialist will give you a realistic timeline based on your state and your specific situation — no false promises. DRB Capital can provide cash advances quickly to solve any imminent needs.

Question 7

What determines how much I’ll get?

Accepted Answer

A few things drive the lump sum: how many payments you exchange, the dollar amount of those payments, when they’re scheduled (payments further in the future are worth less today), current interest rates, and any transactional fees. A small portion of payments will produce a smaller lump sum than a large portion. We don’t ask you to guess — your specialist will pull together a free, written quote with the specific numbers for your settlement so you can see exactly what’s on the table.

Question 8

How do discount rates and fees affect what I receive?

Accepted Answer

The discount rate is how a buyer translates “value in the future” into “value today” — payments years away are worth less today than the same dollar amount now. A lower discount rate means more cash for you; a higher rate means less. Buyers also charge transactional fees that come out of the proceeds. When you compare quotes, look at the net amount you’ll actually receive, not just the rate, and ask each buyer to explain every deduction. A good buyer will walk you through the math in plain terms.

Question 9

What are the tax implications of exchanging my structured settlement payments?

Accepted Answer

According to the IRS website &#8211; For structured settlement payments from a personal-injury settlement, the answer is generally no tax — and that doesn’t change whether you keep them or sell them. The underlying settlement is tax-exempt under federal law, and most courts and the IRS treat the sale the same way, so the tax-free protection follows the settlement, not your decision to convert payments to cash. The rules can be different for workers’ compensation, certain employment settlements, and a few state-specific situations. We are not tax advisors — before you finalize anything, talk to a CPA or tax professional about your specific settlement. Your specialist can flag the questions to ask.

Question 10

Are there situations where exchange isn’t in my best interest?

Accepted Answer

Yes — and we’ll tell you when we see one. If your payments cover essential living expenses and you don’t have another source of income, exchange can leave you short later. If a short-term loan or another resource would solve a temporary cash-flow problem, that may cost less than giving up future payments. If the cash is for a discretionary want rather than a real need, it’s worth pausing. Importantly, the approvers is also looking at this question — a judge can deny a sale that doesn’t look like it’s in your best interest. We make a living exchanging payments, but we’d rather lose a transaction than steer someone into a decision that hurts them.

Question 11

Will exchange affect my retirement plan or government benefits?

Accepted Answer

It can, and it’s worth thinking through. Exchanging future payments reduces the income you’ll have later, which matters if those payments were part of your long-term financial plan. A lump sum can also affect eligibility for needs-based government benefits like SSI or Medicaid, because it can push you over asset or income thresholds. If you receive those benefits, talk to a benefits counselor or an attorney before you sell. Your specialist can help you identify the questions to ask, but this is a conversation we are not a substitute for.

Question 12

What risks should I weigh before deciding?

Accepted Answer

The list: you’ll receive less than the total face value of the payments you exchange; the income you give up is gone; the decision is final once it is approved; and any future change in your circumstances will have to be handled without those payments. There’s also the basic risk of working with the wrong buyer — check BBB accreditation, look at independent reviews, and read the contract carefully. None of this should scare you off if exchanging is the right call for you — it’s just the list of things to weigh, eyes open.

Question 13

How do I compare offers and choose the right buyer?

Accepted Answer

Look at four things: the net cash you’ll actually receive (not just the quoted amount); how long they’ve been in business and their reputation (BBB rating, independent reviews); how they handle the work — does one dedicated specialist see you through, or are you passed around? Do they handle the paperwork and the process for you?; and how they treat you on the first call — straight answers, no pressure. Get a written quote and a clear fee breakdown from anyone you’re considering.

Receive cash for your annuity. Talk to a real person in seconds.

Your Dedicated AAN Specialist

DRB Capital purchases annuity payments from most insurance companies including the following:

Receive $100 just for looking at options

Get access to your future payments
Start Your Online Quote

How it works in 3 steps

1.

2.

3.

Settlement Recipients Who Chose AAN

Why AAN?

Exchangers Who Chose AAN