Predicting the Future: Life Contingent Structured Settlement Payments
You may currently be in negotiations to settle a personal injury lawsuit or you may have settled the lawsuit some time back. As part of the settlement you accepted an annuity- maybe something that paid you monthly for the next some odd years or maybe for “as long as you live”. Life contingent structured settlements have been issued by
1. Allstate life contingent payments
2. metlife life contingent payments
3. Pacific Life, Prudential, American General, John Hancock, Symetra (Safeco), Genworth, Aurora, Aegon/Transamerica and even Executive Life of New York
What is important to understand is the nature of life contingent structured settlement payments. They are usually at the “tail end” of an annuity that contains a guaranteed period- but not always. On a very high level and in a general sense, life contingent payments follow a guaranteed period of say 20, 30 or even 40 years. The payment stream may also contain a cost of living increase but not always.
You will see language in your original annuity paperwork or maybe even in your settlement agreement that contains language such as:
1. 240 monthly payments of $1,000, and continuing on for as long as [you] are living.
2. For the life of [you] but in no event less than 240 months (or 360) months from [inception date)
3. X dollars per month FOR LIFE, guaranteed for 20 years, beginning (inception date) increasing at a rate of x% compounded annually with the final guaranteed payment on (last date of guaranteed payment).
When you have an structured settlement with life contingent payments it ensures that for the rest of your natural life you will get money from the annuity company. The real difference between guaranteed and life contingent structured settlement payments therefore is that the day you die, the annuity company stops making the monthly payment.
Lets take an example, lets say you have a 20 year annuity that also contains the right to life contingent structured settlement payments AFTER the 20 years. Now, lets say that you pass away 10 years into the guaranteed payment period, your family would receive the remaining 10 years of guaranteed payments. However, lets say you live for 21 years and then pass away, your family would not receive any inheritance under the structured settlement as the annuity issuer does not have any obligation to make payments once the life contingent phase begins if you were to pass away.
At CSF, we help people everyday get cash for life contingent structured settlement payments- and in many cases get a cash advance. If you are curious what a willing buyer may give you for your future life contingent structured settlement payments, call us at 800-317-3769