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Pension Payments                                     Online Request For Quote

 

FREQUENTLY ASKED QUESTIONS
You may scroll through all the answers below or you may click on
any individual question and go directly to its answer

  1. Who is eligible to sell their pension payments?
  2. Is there a maximum or minimum amount that will be purchased?
  3. Are people eligible who are not receiving payments but are scheduled to receive them in the near future?
  4. Are there any credit requirements?
  5. Does bankruptcy preclude participation?
  6. How many years of pension payments may I sell?
  7. Are there any restrictions on the use of the money?
  8. Are there any other requirements?
  9. Are there any age lmitations?
  10. How long does it take to get my money?
  11. Are there any other limitations?
  12. How much money will I get?

ANSWERS TO QUESTIONS

  1. Who is eligible to sell their pension payments?
    Anyone currently receiving monthly pension payments is eligible. Most pension plans are acceptable as long as they meet the minimum periodic payment. The following types all are generally acceptable:
    • Retired Military Pension (but see question #9 below)
    • Airline pensions, Pilots
    • Federal, state and local government pensions
    • Teacher pensions
    • Postal Workers Pensions
    • Railroad Pensions
    • Policeman and Fireman Pensions
    • Company Pensions from a Corporation
  2. Is there a maximum or minimum amount that will be purchased?
    Monthly pension payments must be at least $400 per month. This minimum refers to the net amount received after deducting taxes withheld and allotments and other deductions. There is no maximum.
  3. Are people eligible who are not receiving payments but are scheduled to receive them in the near future?
    No. One of the stated objectives of this plan is to make sure that people fully understand the consequences of selling their pension payments so only those that need money now but have sufficient current income apply. We want participants to be settled into their lives prior to becoming eligible, so therefore, all pensioners must be retired a minimum of six months.
  4. Are there any credit requirements?
    Perfect credit is not a requirement, but all participants must have good credit. In addition, another source of household income besides the pension must normally be present.

    Credit reports are typically run from all three major credit-reporting bureaus (Experian, TransUnion and Equifax) and typically there must be a FICO score of 600 or above. It is important to note that the average score in the USA is 678 so a 600 score does not mean you can not have a few slow pays.

    You do not have to guess if you meet this requirement--You can get a FREE estimate of your FICO score by answering 10 quick questions or you can purchase your actual score from Experian for $12.95 or your actual score from all three reporting agencies for only $38.95. This is information that everyone should know and this is a very inexpensive way to find out where you stand. Just click on the link below:

    Free FICOŽ Credit Score Estimator
  5. Does bankruptcy preclude participation?
    No, but the bankruptcy must have been discharged at least two years previously and their credit history since the bankruptcy must be good.
  6. How many years of pension payments may I sell?
    After much experimentation, we have found that an eight year contract is the most beneficial to all parties. Therefore, we will only purchase exactly eight years of pension payments.
  7. Are there any restrictions on the use of the money?
    There are no restrictions on the use of the money.
  8. Are there any other requirements?
    Yes. In almost all cases the funding source will require that there be life insurance in place to cover the amount of their obligation. Existing insurance policies can be used or if you do not have life insurance the company can assist you in finding an appropriate amount. You quote for the value of your payments will include an estimated amount required to purchase the life insurance. Should death occur prior to the end of the contract any excess insurance proceeds over the company's obligation will be sent to your estate for your beneficiaries.
  9. Are there any age lmitations?
    None at all. Only the cost of the required life insurance, which is part of the pensioner's responsibility, impacts the economics of the transaction; if insurance is already in place and the economics of the transaction still appeal to the pensioner, any age will be accepted.
  10. How long does it take to get my money?
    The insurance item is the pacing factor and currently it is taking six to eight weeks to fund.
  11. Are there any other lmitations?
    There is a new limitation on military pensions. On December 16, 2003 President Bush signed HR 2297 into law. This act restricts our ability to purchase VA Disability payments if the VA Disability portion of any military pension exceeds 40% of the total payment. Therefore, we can only quote VA Disability payments if the disability portion is comprised of 40% or less of the total payment. This legislation applies only to VA disability recipients.
  12. How much money will I get?
    Every case is different but the amount you will receive will be a percent of the total payments determined by the yield requirements of the investors. It is much like a lottery where they advertise you win $1,000,000 but you only get that amount if you collect a certain amount for typically 20 years. If you want cash now, you will get about 50% of that $1,000,000 since money now is worth more than money in the future. The yields required in this field are a little higher than the risk free lottery so a general rule of thumb is that you will receive approximately 40% of the future payments. For example, if you received a NET $1,000 per month after all deductions including income taxes then the purchase price for eight years of payments would be approximately $38,400.
    ($1000 times 96 months times 40% = $38,400)

 
Pension Payments                                     Online Request For Quote