Sell Life Contingent Structured Settlement Payments
It is interesting to know that many structured settlement arrangements or selling structured settlements contain what is know as life contingent structured annuity payments. These are settlement payments that some familiar with them call “out of guaranteed period” annuity payments. What some do not know is that they payments, even with the life contingent element, can be bought and sold.
Here is how it generally works, life contingent payments are valued based on when they are due and how old and healthy the seller is. Can we buy life contingent structured settlement due in 2040 or 40 year out? Sure. But can we buy the payments if you are going to be 90 years old in 2040? not very likely.
If you think about it the purchase and sale of life contingent payments or is based on a simple question that is impossible to answer? Is the person selling the life contingent structured settlement payments going to be alive when the payments come due. Suppose What if I have a structured settlement due and I die. A simple concept and question but impossible to answer. Selling structured settlement payments is related to your age too. That said, the more likely the answer is “yes” the life contingent structured payments seller will be alive, the more valuable or viable a transaction will be. Keep in mind that the buyer takes certain actions to mitigate the risk.
As with any structured settlement sale, immediate payments that are life contingent are generally considered more valuable than deferred out of guaranteed monthly payments. For example, say you have $1000.00 per month of life contingent structured settlement payments from Transamerica or Metlife and those payments are due starting in 2019, the value of those monthly payments would be greater than if the payments became due in 2029 or 2039. You may be familiar with this concept if you already sold guaranteed monthly income. You may have received more cash for seller the first segment of the structured settlement (if those payments were due sooner) than if you sold the second part (if they were due later).
Catalina Structured Funding has helped people from across the country meet their economic needs by getting cash for structured annuity payments, including those in the life contingent phase. We have acquired payments due out in 30, 40 and even 50 years (YES- 2060)- yes 5 decades from today- and in doing so have helped those looking to sell life contingent structured settlement payments that other companies simply refused to assist. Call us, tell us what you would like to do and see our offers. Trust us- its often thousands of dollars more than what you think you might get or have been offered.
3 Options for Selling Life Contingent Annuity Payments
Annuities come in all different types. The same is true for structured settlements backed by annuities. Not only do these payment streams come in different types, they also vary dramatically in size. Depending on the annuity purchased or the structured settlement you agreed to accept to resolve a personal injury lawsuit, your options with respect to cashing out these payments for a lump sum will also differ.
The first thing to review in the determining what structured settlement or annuity is worth, is the type of payments. Of course, Catalina Structured Funding will get you the most cash for structured settlements or most cash for annuities regardless of the type but its helpful just to review the variations:
1. Guaranteed Structured Settlement or Guaranteed Annuity Payments. These future payments are made to you or your beneficiaries regardless if you are living at the time they become due. Hence, they are not life contingent– they are guaranteed structured settlement payments or guaranteed annuity payments.
2. Life Contingent Annuity Payments or Life Contingent Structured Settlement Payments- these payments differ from the type in group #1 above. The main difference between life contingent payments and guaranteed payments are that with life contingent annuity payments, or structured settlement payments, the insurance company (e.g.- American Genera/AIG; New York LIfe; Metlife; Prudential; Hartford- to name a few) are only required to make the payments due under the annuity if you are alive. That is why they are called Life Contingent Annuity Payments.
If you are unsure if your structured settlement payments or annuity payments are guaranteed or life contingent, Catalina Structured Funding can review the documents with you for FREE and advise you of the type of payments you are entitled to.
If you are entitled to sell life contingent annuity payments, Catalina Structured Funding can get you a lump sum. Its critical for you to work with a company experienced buying life contingent payments otherwise the process of getting you a lump sum can turn into a time consuming mess. We specialize in working with people selling life contingent annuity payments for a lump sum.
Our experience in purchasing life contingent annuity allows us to provide you with the most cash as well as the most options when it comes to getting a lump sum. These options include:
- Selling part of the life contingent payments
- Selling all of the life contingent structured settlement payments
- Keeping your life contingent payments for a period of time and selling life contingent payments due further in the future.
Sell Life Contingent Settlement Payments For Top Dollar
If you are a frequent reader of this blog you may already know about our fondness of discussing the sale of all sort of life contingent deferred payments. Whether the deferred amounts are life contingent lottery payments, structured settlement payments, or annuity payments, we take a great deal of pride in being able to help people get a lump sum for these unique assets. As a new financial beginning may be around the corner for some of our potential customers, we wanted to take a moment to revisit this topic and discuss some things.
By definition, life contingent structured settlement are payments that are made so long as the “measuring life” is alive. We point out that the term “measuring life” as it is important to keep in mind that the “payee” (the person set to receive the life contingent payments) may not always be same as the “measuring life”. Just recently we worked with a couple that had life contingent structured annuity payments due from Pacific Life Insurance Company (a/k/a PacLife). Although both individuals were entitled to life contingent payments, the payments would stop upon the death of the husband– i.e, the “Husband” was the measuring life. The risk therefore was that if the husband predeceased the wife, the life contingent payments to her would stop as well.
When you are entitled to life contingent payments, the value of the payments- like so with guaranteed structured settlement payments- depends on a host of factors, including the proximity of when the structured annuity payments that you are trying to sell for a lump sum are due. Immediate life contingent payments are more valuable that non-guaranteed payments due in 2 or 3 decades. That makes sense. We need to keep these factors in mind when you offer to buy life contingent structured settlement payments.
There are other more discrete issues that come into play when a company is looking to acquired life annuity payments that are being sold and these issues affect the pricing and value. If you are interested in selling life contingent payments but do not know everything about the payments, you can contact us and we can help you procure the requisite information. Of course, our assistance comes without any obligation or cost- merely the hope of earning your business.
Verifying Life Contingent Structured Annuity Payments
For the person familiar with what it takes to sell structured settlement payments for a lump sum, the content of this article may not be particularly helpful. Indeed, after you have gone through the process once or twice, we find that individuals become very knowledgeable regarding what it takes to get a lump sum in exchange for structured settlement payments. People that sell structured settlement payments become very familiar with the rhythm, speed, and process of working towards getting a lump sum through the court process.
The speed is very much controlled by the law in the state where you live. Some states indicate that a disclosure statement must be provided 3 days or 10 days prior to the effective date of the contract, while other states have no such disclosure period. Once you sell in your state the buyer you work with probably has explained the process once already. Indeed, the reality is the system, the state law required periods of time that must be followed are requirements that EVERY structured settlement buyer must follow. Moreover, they are applicable to every sale of structured settlement payments – whether you are selling 5 years of $500 worth of structured settlement payments or $1 million dollars annually from a structured lottery winning.
How come selling life contingent structured settlement payments to a buyer can be different and require more information than your first few transactions. After all, you would think that your expertise and experience would ensure you know the ins and outs of every aspect of getting cash for structured annuity payments. While in some ways your experience is helpful, getting cash for life contingent structured settlement payments is a slightly different animal. In fact, we have seen all too many life contingent structured settlement buyers offer customers thousands of dollars less than we offered and that may be in part because they are unfamiliar with the process or unclear how to price the purchase of life contingent annuity payments.
What you need to be on the look out for is whether you are dealing with net lump sums or gross lump sums when you are looking to sell contingent life payments. Sure, a number being offered to you sounds great but what does the paperwork say. Is the life contingent payment buyer taking out fees, costs, and insurance related expenses?
At CSF, we are experts in buying life contingent structured settlement payments. We pay thousands more to some customers that bring us buyout offers from other companies.
Who Buys Life Contingent Payments?
A little know option among people looking to sell future payment streams is the option to cash out life contingent structured settlement payments and life contingent annuity payments. While there is a lot out there about selling guaranteed payments, few companies advertise an ability to buy life contingent settlement payments.
Why is this? Truth be told it is far more complicated to convert life contingent structured settlement payments and life contingent annuity payments to an immediate lump sum. Luckily, Catalina Structured Funding, Inc., is here and more than capable to work with you to convert nearly every type of assignable structured settlement that is life contingent into cash now. We have designed a system which puts the customer first in terms of efficiency and avoidance of inconvenience. Plus, since we work to buy life contingent payments regularly you will not experience any delays or bumps when you chose us to be your life contingent structured settlement buyer
What can you do with the money you receive from us for life contingent payments? You can literally chose utilize the lump sum in any way that will make your life better and is in your best interest. Maybe you will use the cash to buy health insurance, a car to help your family and get to and from work, or maybe you will put a down payment on a house to create stability and security for your family. When you work with Catalina Structured Funding, Inc., to get cash for life contingent payments, it is our job to follow through with the commitment to get you the cash you agree to and the court approval as quickly as possible. After that, it is your decision how to properly utilize the funds, consistent with your best interest, to improve your life.
Curious what it takes to get cash for life contingent structured settlement payments? How much time it will take for the court to approve the sale of life payments? What is the most cash for life contingent structured settlement payments other companies have offered you? Give our friendly, pressure free experts at call at 1-800-317-3769 and learn more about anything you want to know about the process, the funding time, or the details of your life contingent structured settlement.
Do not have all the information on hand regarding your structured settlement and when and how much the payments are? No worries, call us and we will help you locate it.
Confusion Regarding Valuation of Life Contingent Structured Settlement Payments
Shopping around your life contingent structured settlement payments may prove to be more of an undertaking then you initially thought. We find that this is often the case for individuals who have worked with the same company more than one time and are either told by that buyer that they cannot help them get cash for life contingent payments OR have realized that approaching more than one annuity buyer may provide to be beneficial.
When working on getting a quote for life contingent structured settlement payments, there are important factors to keep in mind. The most important factor may be your health. Because life contingent payments (as the name suggests) are contingent upon you being alive, your age and health become major factors in assessing and determining what a buyer might be willing to pay you. It is important to understand that a company that pays you cash for life contingent structured settlement payments will only get those monthly (or in rare cases lump sum) payments if you are alive when they become due and owing. As a consequence, assessing the likelihood of this factors into the valuation.
With this in mind, you should consider exactly what your goals are and how much you are looking to raise before you speak to a life contingent structured settlement buyer. Many times, when dealing with life contingent payments, there is a diminishing value for year (by way of example) that you elect to convert for a lump sum. You may be wondering what that means. We all know that further out payments of the same face value are worth less than those payments due sooner. In other words, the $1,000 a month due in 2029 from Metlife is generally worth less to a structured settlement buyer than $1,000 a month due in 2039.
The issue of payments being deferred longer are less valuable that more immediately due payments is frequently compounded when you are talking about life contingent payments. For example, a $2,500 per month guaranteed payment in 2029 is worth less than a $2,500 per month guaranteed payment in 2035, the difference in value of these two payments MAY be more dramatic if they are of the life contingent nature. While this is not always the case, it frequently is. The most obvious reason (and the older you are the more dramatic the impact) is that with passing time mortality risk increases on some level.
Even though there is “no rule” of thumb in this regard, you may want to get multiple quotes for life contingent payments of varying periods of times. This will allow you to figure out which transaction makes the most sense for you. Ultimately, getting quotes from multiple life contingent annuity structured settlement buyers is always a good idea anyway.
Pros and Cons of Selling Life Contingent Structured Settlement Payments
You want to sell your life contingent structured settlement payments for cash now (for a lump sum of cash). This is called a structured settlement conversion by many people. You searched online and saw a bunch of websites pop-up, from companies that buy structured settlements. But you’re just not sure if selling your life contingent structured settlement payments is right for you.
As with most things, there are pros and cons to selling your structured settlement payment rights for cash now. Selling your structured settlement payments is a trade-off—you have to take the good with the bad. However, it’s important to note that choosing the right buyer can make a huge difference and can really help increase the pros while keeping the cons to a minimum.
Here at CSF, our knowledgeable and professional staff have a combined experience that is very special. Our team is willing to assist you in as many ways as possible so that you could have the most POSITIVE experience in selling your future periodic payments for a lump sum of cash. Our goal is to make sure you experience more pros! That is why we wrote this article: we want you to fully understand the conversion process so that you could be as fully prepared as possible.
Let’s take a look at the various pros and cons involved in selling your future periodic life contingent structured settlement payments for an upfront lump sum of cash (the purchase price). Remember, choosing an experienced and reliable buyer like CSF can make all the difference when getting cash for life contingent structured settlement payments
PROS:
- You get CASH NOW for your future annuity/structured settlement payments! Remember, choosing the right buyer is HUGE. Often times, we are able to beat our competitors and offer you the MOST CASH for your structured settlement payments that you have received from the companies that you have spoken to.
- You don’t have to sell anything else, like your car, house or condo.
- You can take care of all those bills, emergencies, and other surprises that life brings to us.
- You have flexibility in what you sell! You don’t have to sell all of your structured settlement payments; you can sell only a part of your structured settlement payments.
- You don’t have to be at the mercy of the bank or credit card companies and their crazy interest rates.
- You can even sell your life-contingent future payments. These are future payments that you can get only if you are alive.
CONS:
- You get less than the aggregate sum of all the future payments that you sell.
- You usually must appear in court for a hearing to determine whether your sale can go through or not.
- It may take a while before your sale is approved.
- Your sale may not be approved by the court.
- You do not receive the structured settlement payments you sell for a lump sum, even the life contingent structured settlement payments.
This list was meant to help you better understand the nature of selling your structured settlement payments. You should make decisions on your own. We do not provide legal, tax or financial advice of any sort. Selling your structured settlement payments may be a complicated process and you may still have questions after reading this article. You can call us directly at 800-317-3769. For more information, answers to your questions and a free quote with a free case evaluation, all over the phone! CALL TODAY!
