Catalina Structured Funding is the Nation’s trusted life contingent structured settlement payment buyer. We have worked with large and small life contingent payments in nearly every state and have funded millions of dollars to happy customers. Let us provide you options to consider.
Nature of Life Contingent Payments
For people unfamiliar with the structured settlement design, they are generally unaware that the payment stream may include a portion that is contingent on them being alive. Sounds a little strange to the novice but there are a host of reasons that a structured settlement contains a life contingent element.
While maintaining the right to receive these payments should be the goal, there are occasions where people look to discuss liquidation options with life contingent payment buyers. Although selling guaranteed payments can feel complicated, the process of evaluating options for life contingent payments can be even more complex. The reason for this is simple: the payments stop the moment the measuring life dies. Because of this there is a need to assess not just the value of the payments standing independently but in conjunction with the health, age, and other conditions of the measuring life. While no one can predict the future, it would make sense that the younger and healthier you are when the payments the more value a life contingent structured settlement buyer may assess them at. You should always discuss options with multiple life continent structured settlement buyers.
If you are at the point of evaluating whether to sell life contingent payments, here are some steps you may want to consider:
What Are the Options Available to a Person Looking for a Life Contingent Payment Buyer?
Option #1: Keep the rights to the life contingent payments and enjoy the security that comes from a structured settlement annuity.
Option #2: Sell just a portion of the life contingent annuity payments. This could mean maintaining the right to receive a portion of each individual payment or alternatively fixing the period that you are exchanging the life contingent payments for a lump sum (which with life contingent payments is almost always the case by definition.
Option #3: Asking the companies you are discussing options with to tell you what the most amount the structured settlement buyer can pay and how many payments they will need to buy to pay you that amount.
What Factors Are Evaluated With Respect to Making Offers on Life Contingent Payments?
- Your Age When the Payments Come Back: Lets say you are entitled to life contingent payments but that they payments will not be made into your 95th Birthday, you might have trouble finding a buyer to make you an offer for those payments due the risk of death prior to the date the payment becomes due. Conversely, you will have an easier time finding a buyer if the life contingent payments revert to you on your 35th Birthday,
- Your Overall Health: If one assumes healthier people tend to live longer, the healthier you are the more options you may have when it comes to getting cash for life contingent payments. Your age, health and when the payments become due are all factors that are considered when assessing what buyers might be willing to pay you.
- Annuity Issuer: Putting aside general rating quality issues, different annuity issuers charge the life contingent structured settlement buyers different “administrative fees”. These administrative fees range anywhere from $0 to over $3,000.00. If your life contingent payments are being made by an annuity issuer that charges one of the larger administrative fees, it may simply not be economically viable for a buyer to make you an offer.
- Measuring Life is a 3rd Party: On rare occasions, a structured settlement may make the payee’s right to receive payments contingent on a third party’s life. In such a case it is virtually impossible for you to exchange the payments for a lump sum unless the third party will participate in the process. This is because in order to assess the value of the payments, a life contingent structured settlement buyer would need to interact with the third party.
- Terminal Illness: If you currently have a terminal illness, it simply may be impossible for any structured settlement buyer to make you an offer for your life contingent structured settlement payments
- Date the Payments Return: This factor standing alone may prevent you from exchanging the payments for a lump sum. For example, if you have sold life contingent payments before and the payments do not return until 2070, there might not be a structured settlement buyer that can assist you in getting a lump sum.
The Starting Point: Evaluate if Your Structured Settlement has a Life Contingent Phase
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