There are “guaranteed” structured settlement payments and there are “life contingent” structured settlement payments. Guaranteed structured settlement payments are payable for a fixed period of time regardless of whether the annuitant or payee is living. If the annuitant or payee is no longer living, payment will be made to the payee’s estate or beneficiary for the remaining guaranteed term.
Life contingent structured settlement payments are based on a variable timeframe in which the insurance carrier will make payments for as long as the annuitant or payee is living. The payments have no minimum or maximum duration – they go on for as long as the payee is living. Payments cease upon the death of the payee.
Many insurance policies are a combination of both types, in which payments will be made for a guaranteed number of years and then will continue to be made if, and only if, the payee is still living.
Can a recipient of life contingent (life only) payments access a lump sum of money for future non guaranteed payment? The answer is YES.
At CBC Settlement funding , we are uniquely capitalized to offer lump sum options to individuals who are receiving life only structured settlement payments. Despite regulations governing these transactions, many companies simply cannot offer their clients lump sums for life only payments.