Imperial Structured Settlements  >  Glossary

Key Terms

Annuitant

The individual on whose life the annuity is based and generally the person receiving or entitled to the annuity payments.

Annuity

A contract that can provide an income for a specified time period, such as a number of years or for the life of the individual.

Annuity Benefits

The guaranteed periodic payments that will be paid to the owner during the payout period.

Annuity Payment Period

The period of time that the annuity payments are designated to last.

Annuity Start Date

The date designated for annuity payments to begin.

Beneficiary

The person(s) or entity who receives the death benefit when the insured dies.

Child Support

Court-ordered support paid by one spouse to the other who has custody of the children after the parents are separated.

Child Support Payoff Letter

A letter identifying the amount necessary to pay off outstanding support obligations.

Court Order

A legally binding ruling issued by a judge or properly empowered administrative officer.

Deferred Annuity

An annuity in which payments begin at a stated time in the future.

Dependents

A person dependent upon a contributor, including: domestic partner, natural children, stepchildren, legally adopted children and children for whom the contributor is the legal guardian under the age of twenty years.

Escrow

An arrangement typically holding money or documents in trust "in escrow" by a trusted party until certain agreed conditions are met.

Estate

A person's property (including money), entitlements and obligations. It is often used in the context of will and probate. It may also be used in reference to real estate or in a bankruptcy.

Face Amount

The amount that will be paid in case of death (life insurance) or at maturity (bond or other investment).

Financial Affidavit

A sworn statement of income, expenses, property (assets) and debts (liabilities).

Funds Transfer

Money that is withdrawn from one account and placed into a different account.

Gross Advance Amount

The sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration.

Gross Purchase Price

The sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration.

Guaranteed Payments

Payments made regardless of whether the annuitant is living or deceased.

Guardian

A person who has the power and duty to take care of another person and/or to manage the property and rights of another person, who is either a minor or considered incapable of taking care of his or her personal affairs.

Independent Professional Advice

Advice of an attorney, certified public accountant, actuary or other licensed professional adviser.

Insurance Settlement

The payment of proceeds by an insurance company to the insured to settle an insurance claim within the guidelines stipulated in the insurance policy.

Joint Annuitants

Two or more recipients of the same monthly benefit payment or a joint and survivor option.

Legal Representative

A person acting for and legally authorized to execute a contract for an individual.

Lifetime Payments

An annuity income option that makes monthly payments of equal amounts for the remainder of the annuitant's life, regardless of the length of time.

Liquidity

The ability to have ready access to invested money.

Lump Sum

A sum of money paid in a single installment.

Lump Sum Annuity

An annuity designed to make a single payment on a specified future date or series of balloon payments on specified future dates.

Lump Sum Payment

A sum of money paid in a single installment.

Net Advance Amount

The sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights after any reductions for transfer expenses or other deductions to be made from such consideration.

Net Purchase Price

See: Net Advance Amount

Notarize

The act of a notary witnessing a person signing a document. Many legal documents require a notarized signature.

Partial Purchase

When a client sells only a portion of their structured settlement or annuity.

Payee

The party to whom money is paid. Usually the payee is the person who the annuity issuer makes annuity payments payable to.

Payment Stream

Payments received periodically from a structured settlement or an annuity.

Period Certain Payments

The period that structured settlement or income annuity payments will be paid whether or not the annuitant dies prior to the completion of the period.

Periodic Payments

Payments that are paid or received regularly, typically on a monthly or quarterly basis.

Personal Injury

An injury to a person's body or mind, as the result of an accident.

Plaintiff

The aggrieved party in a civil or criminal case who bills papers against the defendant in court.

Present Value

The current worth of an amount to be received in the future. In the case of an annuity, present value is the current worth of a series of equal payments to be made in the future.

Purchase Price

This is the amount that the purchaser is offering to pay for the asset.

Quote

A stated price for assets or services.

Settlement Date

The date agreed on for transferring funds to complete a transaction.

Special Power of Attorney

Gives another person legal authority to act on your behalf under defined circumstances.

Spouse

A person's partner in marriage.

Stipulation

An agreement or concession made by parties in a judicial proceeding (or by their attorneys) relating to the business before the court.

Stream of Payments

Payments received periodically from a structured settlement or an annuity.

Structured Settlement Agreement

The agreement, judgment, stipulation or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments.

Structured Settlement Obligor

The party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement.

Term Certain

See: Period Certain Payments

Term of Policy

Period for which the policy runs. For term insurance, this is the length of time the death-benefit protection is available.

Transfer Agreement

The agreement providing for a transfer of structured settlement payment rights.

Transferee

A party acquiring or proposing to acquire structured settlement payment rights through a transfer.

 

Underwriter

The insurance company receiving premiums and accepting responsibility for fulfilling the policy contract.

Workers Compensation

Compensation that covers the medical expenses and lost income of employees if they are hurt in the course of doing work-related activities.

Wrongful Death

When a person's death is caused by the negligent or intentional act of a wrongdoer.

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