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Simple Definitions for Some Common Structured Settlement and Annuity Terms

Hi folks, J.G. Wentworth here.

Ever feel like trying to decide whether to sell your structured settlement or annuity payments is harder than it needs to be? We sure think so – and that it isn’t made any easier by the number of terms related to selling these future payments for cash now.

With that in mind, today we thought we’d review some common terms associated with selling future structured settlement and annuity payments, and explain them as simply as possible. At J.G. Wentworth, we believe that an educated customer is our best customer, and so with that in mind we would like to present to you, in alphabetical order, simple explanations for the following common terms:

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. It is often required because selling structured settlement or annuity payments is a legal process 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 payments at a specific date in the future. Assessing the future value of your structured settlement or annuity payments will 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. This is a crucial part of understanding the true value of any structured settlement or annuity terms over an extended period of time.

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 a lump sum of cash now and a portion of your future payments, as originally scheduled.

Payment stream – Payments received periodically from a structured settlement or an annuity. This is the scheduled payments you are getting over time now. If it’s not enough to meet your current needs, contact J.G. Wentworth!

Purchase price – The amount the purchaser is offering to pay for your structured settlement or annuity payments.

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 need to find your structured settlement agreement if you want to sell payments.

Structured settlement loan – An arrangement in which the recipient of a structured settlement chooses to receive a lump sum of cash by utilizing their structured settlement as collateral. Please note that this is not NOT the type of transaction that J.G. Wentworth makes. We offer lump sums of cash for outright purchases of structured settlement or annuity payments, and believe that this is the preferable arrangement for both parties.


Have questions related to one of these terms, or about a term not explained here? Have any questions at all about your own structured settlement or annuity payments? We encourage you to contact J.G. Wentworth for a free, no-obligation discussion about your current financial situation. Call us anytime at 877-227-4713.