Life Contingent Settlement Annuity Payments Can Now Be Sold 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.
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