What Purchase Price Can You Expect?
How much money will you receive from the sale of your structured settlement, annuity, or life insurance policy?
That's a good question. The answer depends on various factors: the balance on the annuity, the time left before it is paid off, timeliness of payments to date, stability of the payor, the market rate of interest and various other criteria. Remember, the buyer of structured settlement is assuming a risk by purchasing your annuity, so it has to make sense for them financially to do so.
You will always receive a discounted value of the entire stream of payments that are being sold. That is because of the time value of money, and it is based in large part of what type of return the buyer requires on the money that is being paid to you, compared to when the buyer collects on your annuity or other stream of payments. You can learn more about the Time Value of Money on Structured Settlements.com by clicking here.
You are more likely to receive top dollar by having all of your paperwork in order, and by keeping careful records of everything that has happened since the annuity was set up. This helps the structured settlement buyer to provide you with a fair and competitive quote.
Also, remember that you can sell just a portion of the annuity. You don't have to sell it all. In fact, if you only need a certain amount of cash, you should sell just enough months of payments and retain the rest of the annuity after that time period. Or you may sell a portion of each month's payment. Be sure you're working with an experienced buyer of structured settlement payments who can outline all of your available options so that you can make the right decision.