The Process
Here’s what to expect when working with JG Wentworth. First, you can either call or complete a basic contact form online. They will reach out to get more information about your payments to give you an accurate quote. If you’re selling a structured settlement from a personal injury lawsuit, you’re legally required to go through an additional step of a court hearing. A judge must approve the transaction to ensure selling your settlement is in your financial best interest. Once approved, a copy of the approval is sent to your insurance company and JG Wentworth then issues you the lump sum payment.
JG Wentworth Fees
Structured settlement and annuity buyers like JG Wentworth consider many factors when calculating the discount rate, which affects the fee deducted from your annuity value before you receive the funds. Factoring companies look at things like the value of the remaining payments, the date range, current economic conditions, interest rates, court fees, and company profits.
The discount rate usually falls somewhere between 9% and 18%, but it can be higher in some cases. This can translate into an offer that’s significantly below the cash total of your future payments. That’s the price of receiving part of or all your annuity at one time, rather than waiting several months or years to get the money gradually.
Let’s say a person has a structured settlement with future cash payments totaling $50,000. JG Wentworth quotes her a 8% discount rate, which applied to her future payments results in a present value of $40,000. That means she will receive $40,000 (less any additional transaction fees) rather than the full $50,000. Essentially, the buyer gets a $10,000 return for fronting the money.
Selling Options
JG Wentworth purchases both full and partial payments. Here are three options to consider before you start comparing quotes.
Full: You’ll sell all your future payments for a lump sum. You won’t receive any additional funds in the future, which could decrease your financial security.
Partial: By selling a specific number of future payments, you get a smaller lump sum compared to selling your full payment. But after the period of sold payments passes, you’ll resume receiving payments.
Percentage: Another variation is to sell a portion of each remaining payment. You get a lump sum and reduced annuity payments, but you can depend on reliable income in the future.
Before selling your structured settlement or annuity, understand that the decision may impact your long-term financial situation. Consider discussing your situation with a financial advisor. Also, consult with a tax advisor to avoid an unpleasant surprise from Uncle Sam.About JG Wentworth
JG Wentworth was founded in 1991 in Chesterbrook, PA. Since then, the company has helped customers receive over $8 billion in upfront payments. Services include purchasing structured settlements, lottery winnings, and annuities as well as debt relief. Additionally, JG Wentworth has a BBB rating of A+.