There is no question there are a lot of benefits to a structured settlement. They offer the plaintiff the certainty of a fixed payment over a certain period of time, they can be tailored, and they also are also protected by the laws in many states if an insurance company ever goes bankrupt. What a structured does not do, however, is help you if you find yourself in a bind and need a lump sum payment. If you find yourself in this boat, then you probably have a lot of questions. Your biggest question is probably how much you could get in a lump sum. If that is the case, read on for a list of structured settlements calculators that you can peruse.
A discount rate calculator can help you appropriately assess the present value of your future payments. This is referred to as the “discount rate” of your structured settlement. Currently, the typical discount rate for selling a structured settlement stands at between 8 and 14 percent. Should you consider selling your structured settlement at a discount rate? That depends on where your priorities lie. Generally, if you can be patient you will stand to gain more in the long term.
Effective Rate Calculator
The effective rate starts with the nominal annual rate or the “stated rate” and it determined the value of your structured settlement. First of all, it is a useful method for determining whether you should sell your structured settlement, as long as you understand how the effective rate is compounded. Some go by a continuous rate; some daily; and some are compounded weekly, monthly or annually.
Present Rate Calculator
Finally, there is the Present Rate Calculator. This formula establishes the present value of your future payments if you decide to sell all or part of the structured settlement or annuity. The present value is simply the lump sum a company is willing to offer you.
If you want to effectively calculate your discount rate, your best bet is to use either the effective rate calculator or the discount rate calculator formula. Of course, you need to tread wisely. There are no guarantees the values you receive from the calculators will be the amount a company will offer you. They do, however, offer you a good estimate and starting point. Good negotiation is key in this area as well, so knowledge is definitely power.