Settlement Decisions
Sell or keep · honest answer

Should you sell or keep your settlement?

Five quick questions, one straight answer. This tool sometimes tells you not to sell, because a discounted lump sum isn’t right for everyone.

Med F., Settlement AnalystUpdated October 29, 2026

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Question 1 of 520%

Why are you thinking about selling?

Pick the main reason. Be honest, it changes the answer.

Before you decide

When selling tends to help, and when it hurts

Selling tends to help when

  • You face a medical or housing need with no cheaper financing
  • High-interest debt costs more than the discount rate
  • You have a specific, written plan for the money
  • You sell only what you need and keep the rest

Think twice when

  • The money is for discretionary spending
  • You receive SSI or Medicaid
  • Someone is pressuring you to sell
  • Your only debts are low-interest, like a mortgage

Want the numbers? Try the settlement calculator, read should I sell my structured settlement, or see the alternatives to selling.

Quick answer

Should I sell my structured settlement?

Selling makes the most sense when the cash solves an urgent or costly problem, such as high-interest debt or a medical or housing need, that is worth more than the discount you’d pay. Keeping the payments usually makes sense when they cover essential living costs.

Many people do best with a partial sale: selling only enough payments to cover the need and keeping the rest as guaranteed income. Talk to a qualified financial advisor before you decide.

FAQ

Frequently asked questions

Should I sell my structured settlement?
It depends on why you need the money and what else you could do. Selling tends to make sense for an urgent, specific need such as medical bills, high-interest debt or a home purchase, when cheaper options are not available. Keeping your payments is usually better if you rely on them for living costs or have no specific plan for the cash.
How much will I lose if I sell?
Buyers apply a discount rate, often somewhere between 9% and 18% a year. On a long payment stream that can mean receiving roughly half to three quarters of the total future payments. Comparing several written quotes is the most reliable way to lower the rate you accept.
Can I sell only part of my structured settlement?
Yes. You can sell a set number of payments, part of each payment, or specific lump-sum payments, and keep the rest as income. A court still has to approve the transfer.
When should I not sell?
Be careful if the money is for discretionary spending, if you receive SSI or Medicaid, if someone is pressuring you, or if your only debts are low-interest ones like a mortgage. In those cases the discount usually costs more than it saves.
What are the alternatives to selling?
Common alternatives include a personal loan, a home equity line, negotiating with creditors, a partial sale, or simply waiting if the need is not urgent.
Will selling affect my taxes?
If your settlement came from a physical injury or illness, the lump sum is generally tax-free under IRC Section 104(a)(2). Other settlements may be taxed differently, so confirm your situation with a tax professional.
Will selling affect my credit score?
No. A settlement sale is not a loan and does not appear on your credit report. Using the money to pay down debt may improve your score over time.
How does this tool reach its answer?
It scores your answers on five factors that also matter in court reviews: the reason for selling, your financial situation, your stage of life, the alternatives you've considered, and your comfort managing a lump sum. It is a rule-based guide, not financial advice.

Keep going

Other free tools

Scenario modelerSell all, sell part or keep, side by side.
Net proceedsWhat's left after liens, support and expenses.
Annuity valueValue deferred, rising or lump-sum annuity payments.
Company matchBuyers that fit your payment type and state.

This tool gives educational estimates only. It is not a quote, a guarantee, or legal, tax or financial advice. Actual offers depend on your payment schedule, the annuity issuer, the buyer and your state's court. Talk to a qualified financial advisor and, where your state requires it, an independent professional before you sell.