Why do I receive less than the full amount when selling my structured settlement?

In order to understand this, its important to understand a financial principal known as the Time Value of Money. Consider that the cost to buy a home about 20 years ago was around half of what it is today.

Or consider that $1,000 today will be worth much less 20 years from now. The discounted rate you’re offered from a structured settlement buyer takes this into account, along with other considerations such as the rating of the insurance company that issues the settlement, current demand for secondary market annuities, the amount and how long to collect in full, along with other details.