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.
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