Structured settlement calculators are online tools that help you in making sense of all the terms and conditions of structured settlements offered by different insurance companies. Basically, these calculators tell you what your future payments will be after you enter some terms and conditions of the settlement deal. These online tools work on the assumption that future payments are received by the payee as a lump sum. It further assumes that the settlement payee has an annuity or structured settlement at the time of settlement.

What does this mean? This means that your future annuity or structured settlement payment will not be received in a lump sum amount right at the time of settlement. Instead, it will be disbursed over a period of time till your future payments are received. So in a way, the structured settlement calculator is working on the assumption that your future annuities will not be received in a lump sum. In fact, it is based on the assumption that payments will be made to the payee on a regular basis till the total amount is received. These payments will be made without the need to calculate future payments on a monthly or annual basis.

How does the online structured settlement calculator work? First, the customer enters the value of a lump sum payment required for his annuity or structured settlement. The calculator then asks for information like the start date, amount of payments, mode of payment and other details regarding the case. After entering the required data, the calculator will give you the present values of the given data. There are different types of values used in the calculation of present value.

The most common value used in the calculation of present value is the Present Value of Payments, which is also known as the AVG. This value is the amount that would be paid to the beneficiary (who is usually the person receiving the payments). When calculating for future payments, the Present Value of Payments is also used. The second most common value used in the calculation of future payments is the Accumulated value of payments. This value is also known as the AGP, and is basically the amount of money that accumulates over time. Finally, the Time Value of Money is the amount of time that it will take for any amount of money to be received; this value is generally 10% of the total sum of money going into the settlement.

Using a structured settlement calculator is beneficial because it helps one to get a better understanding of how much money he can expect to receive in the future. It also helps one to decide whether selling structured settlements is the right option for him. However, one must keep in mind that although a structured settlement calculator can be very helpful, it is not meant to replace an attorney. Prior to signing any legal documents or agreeing to any settlement, one should always consult an attorney. It is also important to remember that although these calculators may help one to make an informed decision, they are not meant to replace the services of an attorney.

When using a structured settlement calculator, keep in mind that you are using information provided by real estate companies and banks. These calculators are not intended to provide personalized advice. The results that you get will depend on how much total income you will be getting once you sell your entire structured settlement sale. Some of the factors included in the calculation are interest rate, current tax rate, expected monthly salary, and other factors. It is important to remember that even if you do not need the information for making an informed decision about selling, it is still important to consult an attorney or a financial adviser before deciding on the sale of one’s entire structured settlement sale.