Are you either new to our blog, or a long-time reader, who is still struggling a bit to make sense of all the terms related to selling future structured settlement and annuity payments? Today’s blog will define 12 commonly-used terms as simply and clearly as we can. We’ve posted them here because we genuinely believe that the more our customers understand in advance about selling future structured settlement and annuity payments, the more satisfied they’ll be with the process.
Annuity – A fixed sum of money paid to someone at regular intervals, typically for the rest of their life. If you are currently receiving money from an annuity – or scheduled to receive money from one in the future – you may be able to sell these payments to a company like J.G. Wentworth and get the value of that money much sooner.
Court order – A legally binding ruling issued by a judge. A court order is required when selling structured settlement payments. The court order process was put into place to make sure your interests are protected.
Future value – A value that measures the future “worth” of a structured settlement or annuity at a specific date in the future. Assessing the future value of your structured settlement or annuity will help determine the purchase price offered to you.
Guaranteed payments – Payments made regardless of whether the recipient is living or deceased.
Inflation – An increase in the cost of living, due to a rise in prices.
Lump sum/Lump sum payment – A sum of money paid in a single installment. This is the offer made to you in exchange for your structured settlement or annuity payments.
Notarize – The act of a notary witnessing a person signing a document. Many legal documents require a notarized signature. We know thousands of notaries across the country, and can even get one to show up at your home or work if you need assistance.
Partial payment sale/partial purchase – An arrangement where you sell just a portion of your future payments in exchange for cash. If you qualify, this type of transaction will enable you to receive both cash now and a portion of your future payments.
Purchase price – The amount the purchaser is offering to pay for your structured settlement or annuity payments.
Stream of payments – Payments received periodically from a structured settlement or annuity plan.
Structured Settlement Agreement – The agreement, judgment, stipulation or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments. No job is finished until the paperwork is done! You’ll likely need to find your structured settlement agreement if you want to sell payments.
Time value of money – The idea that money available at the present time is worth more than the same amount of money in the future, due to its potential earning capacity. This is another concept that is important for those wishing to understand the true value of their structured settlement or annuity payments.
Have questions about any of the terms or concepts mentioned here? J.G. Wentworth will be more than happy to answer them, along with any other questions you may have about your own future structured settlement or annuity, or the process of getting cash now. Call us anytime at 877-227-4713.