Lump Sum Value of a Structured Settlement

1 Comment

The general rule of thumb for the lump sum value of a structured settlement is approximately 50% or less of the total value of the settlement payments.  For example, if you have a settlement worth $1 million spread out over 10 years, if you were to sell the structured settlement you could expect to receive $500,000 due to the discounting due to the time value of money (obviously, this holds true if you intended to buy structured settlements).

One Comment (+add yours?)

  1. Annuities and Structured settlements
    Feb 19, 2010 @ 02:15:38

    One needs to do his or her homework before selecting the right structured settlement.

Leave a Reply

You must be logged in to post a comment.