Structured settlements Present Value Calculator is a financial tool that is intended to help you compute the value of a future payment stream in an annuity or structured settlement. This tool is ideal for investors who are considering purchasing structured settlements as investments. If you are interested in investing in structured settlements as an investor, you should familiarize yourself with the terms of these types of settlements before making any decision. Here is a simple review of Structured Settlement Calculator and how it can be used to your advantage.
What is a Structured Settlement? A structured settlement is a payment made in installments to an injured party to settle the damages incurred due to an injury. A structured settlement calculator evaluates how the lump sum amount will change over time and what rate of return you will receive on the initial investment. Please feel free to include this on your personal website or blog.
How Do the Different Options Work? Most people who have received structured settlement payments are aware that there are two main ways to receive these payments. One way is by court order through a lawsuit. The other way is lottery winnings. In a lottery, a random number is drawn for a structured settlement payment. The value of the settlement will be based on the amount still owed on the lottery winner, current market interest rates, and the payout schedule.
How Do I Use the Structured Settlement Calculator? To use the structured settlement calculator, first input the amount of the lump sum settlement into the structured settlement calculator. Next, select a date for your payout. In several cases, the value of the structured payments may change over time so it is necessary to update your information as well.
How is the Amount Due For the Annuity/ Lump Sum determined? Most structured settlement calculators will provide an estimate of the total amount due per annum. In some cases, if you have an interest rate change that results in higher monthly payments, you will need to update the information to reflect the new rate. If you enter an interest rate that is higher than the rate at which your remaining payments are structured, the amount due for each month will become less than what it was previously.
What if I am unable to make all of my payments? In most cases, if you are unable to fully make all of your payments, the courts will require a re-evaluation of your financial situation. Depending on the type of structured settlement calculator that you use, you can determine an effective discount rate for your annuity/ Lump Sum payment. An effective discount rate is the best way to ensure that you will be able to receive a large enough lump sum payment to cover the cost of your remaining life insurance premiums.