Guaranteed VS Non-Guaranteed Structured Settlements
My Structured Settlement likes to keep things simple when dealing with our clients. However, sometimes it helps you to understand the process, when we include some of the important specifics that may affect the value of your structured settlement. You may have already used a structured settlement calculator to get an idea of the value of your settlement, and you are probably wondering about some of the factors that go into that decision.
One of the most important factors that you may or may not know about is the difference between a guaranteed vs. a non-guaranteed settlement. In general, a guaranteed payment means that your estate will continue to pay regardless of your life or death. Non-guaranteed payments are only setup to pay while you are alive.
As an example, let's say that you are currently receiving $1500 a month for an accident that happened five years ago. The structured settlement is set up for you to receive this aid for the rest of your life. However, the type of guarantee behind it will ultimately decide its value to a buyer.
In one scenario, we're going to say that money is guaranteed until you reach 50 years of age. That means, in the event of your untimely passing at age 40, your payments would continue for the next 10 years. However, if your payments are non-guaranteed, those payments would stop immediately. If you look at it this way, it is easy to see why your guaranteed payments are more valuable and easier to sell that your non-guaranteed payments.
Understanding the value of your structured settlement is an important part of the selling process. However, there are a lot of other factors involved, which is why we ask you to contact us for a free quote. This is so we can explain your options based on the exact type of structured settlement you own. You may have more than one option at your disposal, and the only way to know is to contact us today.