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Structured Settlement

How Do I Get Immediate Annuity For Structured Settlement

By August 16, 2012No Comments

Immediate Annuity CashThose with structured settlements often wonder “How do I get immediate cash for structured settlement”? Often they go to the internet and look for best immediate annuity companies that will provide cash out for structured settlement payments.  When they do so, they frequently read reviews of structured settlement buyers.

Just recently an individual looking to sell structured settlement payments for cash now contacted us at Catalina Structured Funding. She was very hesitant on the phone and very skeptical about the services that were offered by buyers of structured settlement payments. Prior to contacting Catalina Structured Funding, it appears that she had read some review of another structured settlement buyer or some sort of article on the internet that said if she sold her structured settlement payments for a lump sum she would receive only pennies on the dollar. Many people that contact us with concerns about the financial ramifications of getting cashing for structured settlement. mp sum have the same concern. It is a fair one.

There are two ways people review the “terms” of a structured settlement transaction. Some folks like to look at the net amount they will receive in the form of a lump sum against the aggregate of the structured settlement payments they are selling. In other words, if you are selling 100 monthly payments of $10, the aggregate of these structured settlement payments would be $1000.  (Of course, structured settlement payments are not as small as $10 per month). Customers that do the net purchase price v. lump sum would then focus on whether they were receiving $900, $750 or $500 in exchange for the total aggregate batch of $1000.

Viewing the financial implication of selling structured settlement payments in this fashion can be problematic, however. For example, there is universal agreement that $100 payment due tomorrow is more valuable than a $100 payment due to you in 20 years. For this very reason, you would not accept anything much less than $100 for $100 payment due tomorrow but you very well might accept less than $100 for the payment due in 20 years.

Selling structured settlement payments for cash now operates in a very similar way to this logic. That is to say, and of course there are exceptions, a structured settlement payment due sooner is more valuable than a structured settlement due further in the future.  There are a host of other important factors to consider like the annuity issuer making the payments and also, and many would say primarily, the effective rate of the structured settlement sale.

Call us at Catalina Structured Funding with your best cash for structured settlement offer and we will provide you more cash: 1-800-317-3769.