What is a Life Contingent Payment?

You have a structured settlement and it entitles you to two opposite kinds of payments.

The first is known as Guaranteed Payments.

Guarnateed Payments - Is a payment or payments that are made out to you from the Insurance company. This happens whether or not you are living at the time payment is owed. So if you pass away you will still have payments that come in and are paid to your beneficiaries. Your estate & heirs would most likely be the candidates that receive the monthly check.

The second type of payment is not as beneficial for you as it is called a: "Life Contingent Payment" or a (Non-Guaranteed Payment)

This type of structured settlement payment is the opposite of the guaranteed described above. In this scenario the insurance corporation is only going to make payments if the beneficiary is living at the time payment is owed. So if you die tomorrow your family, heirs, and trustees will receive absolutely nothing the next time a payment comes due.

There may be cases where a structured funding company purchases a life insurance policy to protect their settlement transfer in case of a death once the policy has been transferred. If and when this happens it is not something that should be worried about as this helps those who are in need with a life contingent structured settlement to sell it when they otherwise would not be able to.

Your structured settlement will most likely entitle you to receive a combination of both many insurance companies may induce sneaky tricks to get out of paying you. So it's very important to sell off these annuities for a lump sum to experts like us here at Einstein Structured Settlements. So whether it's a life contingent payment or not we can help you get funded faster, quicker, and more profitable than anybody else.

There are way too many reasons why you should cash out in full now but we can explain all of that over the phone to you.

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Source: http://docphy.com/business-industry/personal-finance/insurance/life-contingent-payment.html