Why Might My Quote Change Over Time?
If you called J.G. Wentworth in the past but decided not to accept any of our offers, your quote this time will likely be different. Why is that? One of the main reasons that your quote will change has to do with the time value of money.
How To Find Out What Your Structured Settlement Is Worth
Time Value of Money
Consider this: A dollar today will not have the same value as a dollar five years from now. If you have a dollar now, you know exactly what you can purchase with that amount — in other words, it has an exact value. However, the value of a dollar at some point in the future is less certain due to factors like inflation.
For that same reason, when your representative is reviewing the details of your structured settlement, they will value payments that will be paid to you sooner more highly than payments that are years away. The value of cash in the future measured in today’s dollars is known as its net present value.
What is the Net Present Value of Future Payments?
Here’s a Hypothetical Example:
Let’s suppose that Dan is scheduled to receive a large structured settlement payment in the year 2030. In 2018, he makes a call to J.G. Wentworth to ask about selling this payment for a lump sum of cash. The representative offers him a quote, but after some consideration, Dan decides not to move forward with the sale.
In 2025, Dan makes another call to J.G. Wentworth. This time, when the representative offers him a quote, they are able to offer him more cash for the same payment. That’s because those payments are now closer to the due date and are worth more than before.
Let’s Look at Another Example:
Lisa is scheduled to receive monthly payments for the next ten years. In 2018, she calls J.G. Wentworth to ask about selling all of these payments. After hearing a quote, she ultimately decides to hold off for a few years.
Lisa calls J.G. Wentworth again in 2025. This time, the amount of her quote has actually decreased. This is because Lisa now only has three years of payments remaining; compared to the ten years of payments she had when she first called. Although the lump sum that we would offer her will be smaller than the original quote, the dollar value of those payments will be higher since they are closer to the due date.
Remember that each quote is unique, and there are a number of factors that we consider before presenting you with an offer. Your representative will be able to explain all of the specifics of your quote.
Quotes May Change — Our Exceptional Customer Service Doesn’t
Whether you’re contacting us for the first time or giving us a call a few years later, you can rest assured that you will experience the same, high-quality customer service. Our friendly and helpful representatives are ready to work with you to help you meet your financial goals.
If you’ve contacted us before, your account representative can easily pull up any information that was discussed previously, including any structured settlement quotes that we offered. Should you have any questions or concerns, do not hesitate to contact us.