Myths About Life Contingent Payments

Discount rates are typically disclosed to you so that you can properly judge fairness.
By lcpayments108-04-2222
LC Payments
LC Payments are life contingent payments professional with 20 years experience.

Our last post covered best practices for hearing day, check it out here in case you missed it! This week, we want to cover some popular misconceptions about life-contingent payments.

1. Life Contingent Payments Cannot Be Sold

This is a myth propagated by structured settlement purchasers that do not have the experience or investor relationships to purchase life payments. 

The truth is, while life-contingent payments may be valued less than guaranteed structured settlement payments depending on the health of the beneficiary, there are always investors willing to underwrite this risk.

Life Contingent Capital works with recipients of life payments of all socioeconomic status, health and age ranges.

2. The Process For Selling Life Payments Takes 6-8 Months

The only reason the purchasing cycle would take that long is if the settlement buyer is inexperienced and does not have the proper legal paperwork in order.

Converting life-contingent payments into cash is very similar to working with guaranteed payments – some additional information regarding health status may be required but it’s relatively routine.

Individuals working with Life Contingent Capital can expect a 1-2 month process till funding.

3. Because The Payments Are Risky, You Will Only Get Pennies On The Dollar

Certain factors, such as health and timing of settlement payments, will dictate the funding that can be received, but be wary of settlement purchasers that are trying to rip you off!

Individuals in good health with life-contingent payments in their 40’s, 50’s and 60’s can expect to receive good value for their payments. If you have doubts about the fairness of a proposed settlement transaction involving life payments, Life Contingent Capital is always available to provide advice and free quotes!

Call (833) 760-4006 to see what options may be available to you.

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