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J.G. Wentworth Blog

Ten Important Terms You Should Know

Hi folks, J.G. Wentworth here. If you are considering selling your structured settlement or annuity payments for cash, here’s a list of 10 terms that we believe are important to know. They’ll go a long way towards helping you understand the process of selling your payments to a company like J.G. Wentworth.

Court order – A legally binding ruling issued by a judge. It is required because selling structured settlement or annuity payments is a legal process put into place to make sure your interests are protected. It generally takes anywhere from 6 to 12 weeks for a judge to look over the transaction and make a determination.

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 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 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 exchange for your structured settlement or annuity payments.

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 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 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 contend that this is the preferable arrangement for both parties.

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.

Do you have a question about any of these terms or concepts? Would you like to learn more about the process of selling your structured settlement or annuity payments for cash now? Please give us a call at 877-227-4713.