Structured Settlements Florida

Factoring companies exchange capital or payments over time for lump sum payouts now. It's important to understand what options are available before choosing to work with a factoring company to advance your future annuity payments. You can get a free analysis which will help you to understand your structured settlement. This is a great first step to getting the cash you need now.

Why do you need a 3rd party to cash out your settlement?

Structured settlements and annuities are created by insurance companies to protect the recipient. The payments are often structured to supplement or replace the income of someone who has been in an accident or is unable to work. Advancing those future payments may not always be in the best interest of the payment recipient and often includes costly fees. The 3rd party companies understand the legal aspects of advancing future payments and handle all of the legal and financial aspects of the transaction to help you get the money you need now.

What is the time value of money?

Today, you can get lunch for two at most casual restaurants for $20. Teb years from now, when the costs of living are increased overall by inflation, that same lunch may cost upwards of $40. This is an example of the time value of money. The same $20 from today won't be worth as much, or be able to purchase the same quantity or value of goods, as it does today.

Your future annuity payments work the same way. Your payments 20 years from now, if advanced in a lump sum today, aren't worth the full amount. The value of your future payments are estimated by several factors that project the future cost of living and overall value of money. This is how factoring companies determine the value of your advanced structured settlement payments.

How long does this process take?

On average, the entire process of advancing your future payments can occur in 90 days. Some important factors that determine the time needed to complete this process are the state you live in, which insurance company pays you and how long it takes to acquire the documentation about your settlement or annuity. You can contact us to get more detailed estimates about your specific transaction.