Q: How are structured settlement buyout offers calculated?

What goes into the calculation of structured settlement buyout offers?

A: Structured settlement buyout offers are determined by discounting the future value of your payments to a present value, which considers factors like the total amount of the payments, the duration, and the discount rate. The discount rate accounts for the time value of money, which means that a dollar today is worth more than a dollar in the future. The higher the discount rate, the lower the present value of your structured settlement. When evaluating offers, it's important to consider the discount rate, fees, and the overall financial impact of selling your structured settlement.