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


A transaction that changes an annuity from an accumulation phase to a payout phase. Annuitization occurs once payments begin to be disbursed to the Payee.

Annuity Contract

A contract that defines the type and terms of an annuity.

Annuity Issuer

The insurance company that issues an annuity contract used to fund an Annuitant or used to fund Periodic Payments under a Structured Settlement.

Annuity Owner

The individual(s) or company that purchases an annuity. Depending on the terms of the annuity contract, the owner or owners may have the right to make withdrawals, surrender or change the designated beneficiary, or make other changes to the terms of the contract.

If you purchased a Non-Qualified Annuity, you may be the Annuity Owner. Call us to see if we can help you access a lump sum of cash.

If you are a Structured Settlement recipient, you are not the Annuity Owner. The Owner (or obligor) is the party that purchased the structured settlement annuity and has a continuing obligation to you to make Periodic Payments under a Structured Settlement Agreement or Qualified Assignment Agreement.

Annuity Payment Period

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

Annuity Start Date

The date annuity payments are scheduled to begin.


An annuity is a financial contract written by an insurance company that provides for a single future payment or for multiple Periodic Payments. There are various types of annuities. Rising Capital can purchase many of these. Please contact us to see if your annuity qualifies for funding.

Applicable Federal Rate

The most recently published rate for determining the present value of an annuity, as issued by the United States Internal Revenue Code §7520. The Applicable Federal Rate is published monthly and represents certain IRS assumptions. It is not the discount rate used to calculate your Purchase Price. The IRS Federal Rate can be and has been kept exceptionally low by extraordinary actions of the Federal Reserve.

Applicable State Court

To obtain a Qualified Court Order approving a transfer of structured settlement payment rights that would entitle you to a lump sum payment, Rising Capital must file a petition in the proper court in the county where you reside or before the court that approved your Structured Settlement.


Any party that acquires Structured Settlement Payment Rights or future Lottery Prize payments directly or indirectly from a Transferee of such rights.

Assignment (of Policy)

The legal transfer of one person’s interest in an annuity to another. If you own certain types of Non-Qualified Annuities, you may be able to assign your policy to Rising Capital in exchange for a lump sum of cash. If you are a structured settlement recipient or a Lottery prize winner, a court must approve the assignment of your payment rights before you can receive a lump sum from Rising Capital.


The person(s) or entity(ies) designated to receive a death benefit or guaranteed payments when the Insured, Annuitant or original Payee dies.

Cash Surrender Value

The amount that the owner of an annuity or life insurance policy is entitled to receive upon surrendering the policy to the issuing insurance company. This amount may be reduced by surrender charges or policy loans, if applicable.

Child Support Payoff Letter

A letter identifying the amount necessary to pay off an outstanding child support obligation.

Child Support

Court-ordered support paid by one spouse to a person who has primary custody/care of the children, usually sought when the child’s parents get separated or divorced.

Court Order

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


A person dependent upon another person for care and/or financial support, including: your spouse, domestic partner, natural children, stepchildren, legally adopted children and any other individual for whom you are the legal guardian.

Discount Rate

The interest rate used to compute the present value of future cash flows.

Discounted Present Value

The net present value of future payments, this is determined by discounting the future payments to the present.

Divorce Decree

A divorce decree is a court order that finalizes the dissolution of a marriage. A divorce decree may also contain the judge’s order with regard to related matters, such as the division of marital assets, alimony and child custody. Sometimes the division of assets is memorialized in a separate Property Settlement Agreement the divorcing parties sign.

Fixed Annuity

An annuity in which the annuity issuer makes fixed dollar payments to the annuitant or designated payee for a fixed period of time.

Full Purchase

A transaction in which a payee or annuitant sells their rights, title and interest to all of their future structured settlement payments or their annuity in exchange for a large lump sum payment.

Gross Purchase Price

The amount of money you are contractually offered by someone purchasing your annuity, your Structured Settlement Payment rights or your future Lottery Prize payments. This is the amount payable as consideration before any reductions for transfer expenses or costs charged by the purchaser. With Rising Capital, your Gross Purchase Price is the same as your Net Purchase Price. We never deduct transfer expenses or costs from your Gross Purchase Price. We always pay for those ourselves.

Guaranteed Payments

Payments made regardless of whether an annuitant is living or deceased. If an annuitant or original Payee is deceased, these payments will be made by the Annuity Issuer to the policy’s designated Beneficiaries.


A person who is entrusted by law with the care of the person or property, or both, of another.

Immediate Annuity

An annuity in which the annuity payout period begins immediately or within one year of the annuity purchase date.

Independent Professional Advice

The advice of an attorney, certified public accountant, actuary or other licensed professional adviser who is engaged by a Payee to render advice concerning the legal, tax and/or financial implications of a transfer of Structured Settlement Payment rights.

Rising Capital advises everyone interested in selling their annuity, structured settlement payment rights or lottery payments to seek and obtain Independent Professional Advice. While this type of transaction can put much-needed money in your pocket, it should not be sought out lightly. You should speak with professional advisors to ensure you fully understand all the short and long-term financial implications of your decision.

Interested Parties

Interested Parties are the people or entities that must be given notice of your structured settlement transfer or your assignment of Lottery prize payments. Typically, the annuity owner, the annuity issuer, the payee and any irrevocable beneficiary are all considered Interested Parties in structured settlement transfers.

Joint Annuitants

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

Life Contingent Payments

Many annuities, structured settlements and lottery prizes provide for Life Contingent Payments. These are payments that are not guaranteed or certain. The Annuity Issuer’s obligation to make such payments will end when the Payee dies.

Rising Capital purchases Life Contingent Payments. When you sell Life Contingent Payments to Rising Capital, you are receiving a guaranteed lump sum of money and transferring all the risk of non-payment to us.

Life Expectancy

The probable number of years remaining in the life of an individual or a class of persons, determined statistically by an actuary or other similar underwriter, based on age, gender, demographic factors, health and family history. The value of your Life Contingent Payments will be impacted by your Life Expectancy.


Liquidity describes the degree to which an asset can be quickly converted to cash, without legal obstacles or time-consuming procedures. Rising Capital provides liquidity to holders of various uncorrelated assets, including annuities, lottery prize payments and structured settlements.

Lump Sum / Lump Sum Payment

A sum of money paid in a single installment.

If you sell your annuity, structured settlement payment rights or future Lottery payments to Rising Capital, we will provide you with a large lump sum payment.

Lump Sum Annuity

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

Net Present Value

The amount of cash today that is the equivalent in value to cash to be received in the future based on a specific discount rate.

Net Purchase Price

The sum payable to the payee for a transfer of an annuity, structured settlement payment rights, or lottery payments, after all deductions or charges made by the purchaser.

Non-Qualified Annuity

An annuity contract you buy individually, rather than as part of an employer-sponsored qualified retirement plan. The premium for this type of annuity is paid with after-tax dollars. Unlike structured settlement annuities, payments associated with Non-Qualified annuities may be taxable, to the extent of gain, to the Payee or Annuitant.


The act of a notary affixing his or her seal and signature to a document. This signifies that he or she witnessed the signing of the document and received verification that the signor was the individual whose name was identified on the document. Structured Settlement transfer documents often require notarization as a protection to both the Payee (against identity theft) and the Purchaser (against fraud).

Partial Purchase

A transaction in which a payee or annuitant sells their rights, title and interest to only a portion of their future structured settlement payments.


The person to whom the annuity issuer makes annuity payments.

Payment Stream

Payments received periodically from a structured settlement, annuity or lottery winnings.

Period Certain Payments

The time period during which structured settlement or income annuity payments are guaranteed. If an annuitant or payee dies prior to the end of the Period Certain, the annuitant’s beneficiary will typically receive the future payments as they come due.

Periodic Payments

Payments that are made in installments at regular intervals over a period of more than one year. Periodic payments may be made monthly, quarterly, semi-annually, annually, biannually or even every few years. Periodic payments include recurring payments and scheduled future lump sum payments.

Personal Injury

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

Present Value

The current worth of an amount of money scheduled to be received in the future. The date any Periodic Payment is scheduled to be received has a huge impact on its Present Value. Payments due closer to today’s date have a much higher value than payments scheduled to be received in the distant future.

Proof of Identity

Proof that you are who you claim to be and that someone isn’t trying to steal the identity of an Annuitant or Payee. Many Purchasers require that their Transfer Agreements be notarized to ensure the Payee provides their Proof of Identity to a Notary, who can verify that the person who signed the Transfer Agreement is the person with the legal right to sell the relevant payment rights. A valid driver’s license or State Identification Card is typically the best proof of identity a Payee can provide.

Proof of Residence

Proof that you are domiciled in the State you tell us. A valid driver’s license or State Identification Card is typically the best proof of residence a Payee can provide.

Purchase Price

This is the amount that a purchaser is offering to pay right now for the right to receive your Periodic Payments in the future.

Purchasing Power

Purchasing Power is what your money can buy. This phrase is used to describe the quantity of goods or services that one unit of money can buy. In general, the purchasing power of a set amount of money (like $100) will DECREASE over time. This means the Purchasing Power of $1 today is MORE than the Purchasing Power of $1 tomorrow. $50,000 today, for instance, would enable you to buy much more today than it will ten years from now.

One way to think about purchasing power is to imagine if you made the same salary as your grandfather did 50 years ago. Today you would need a much greater salary than him just to maintain the same quality of life. By the same token, a homeowner looking for homes 30 years ago in a $100,000 price range would have had substantially more options to consider than you would have today.

Qualified Assignment

An assignment of the obligation to make future settlement payments which satisfies the requirements of the Internal Revenue Code for favorable tax treatment of a structured settlement. Typically, the insurance carrier for the defendant assigns its obligation to make the future payments called for in the settlement agreement to an assignee, which then takes on such obligations, often through the purchase of an annuity, a qualified funding asset.

Qualified Court Order

A final order, judgment or decree which (1) finds that a Transfer of your Structured Settlement Payment rights does not contravene any Federal or State statute or the order of any court AND finds that the Transfer is in your best interest, taking into account the welfare and support of your dependents, if any; AND (2) is issued in accordance with the Structured Settlement Protection Act in place in the state where you are domiciled. If you live in a state where there is no Structured Settlement Protection Act, a Qualified Court Order would be issued in accordance with the statute that governs your Structured Settlement or where the Annuity Owner or Annuity Issuer is domiciled or has its principal place of business.


A no-obligation assessment of the present value of your annuity, future structured settlement payments or future Lottery prize payments.

If you have your structured settlement, annuity or Lottery documents handy, we can review your situation over the phone (or via email – just use the Free Quote link on our site) and provide you with a quote in mere minutes.

Responsible Administrative Authority

With respect to a structured settlement, any governmental authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement.

Separation Agreement

A contract between a husband and a wife, signed when a legal separation has been granted or when they have agreed to live apart in contemplation of a divorce. The agreement is designed to settle any property, debt, alimony, child custody, visitation, insurance, tax, and child support issues that may lie between them.

Special Power of Attorney

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


A person’s partner in marriage.

State Tax Lien

A claim against property for the amount of the owner’s unpaid state taxes.


An agreement 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, annuity or Lottery prize.

Structured Settlement Agreement

The agreement, judgment, stipulation or release embodying the terms of a structured settlement, including the right of the payee to receive periodic payments. This is generally an agreement whereby an injured person, or someone acting on their behalf, releases the party who caused the injury, from all liability over an accident, for injuries known and unknown, in exchange for their promise of future payments.

Structured Settlement Obligor

The party who is obligated to make continuing periodic payments to a Payee under a Structured Settlement Agreement or a Qualified Assignment Agreement.

Structured Settlement Payment Rights

The right to receive Periodic Payments under a Structured Settlement. As structured settlement Payees are not the Owners of their Structured Settlements, when a Payee enters into a Transfer Agreement with a Purchaser, what the payee is actually selling is his or her right to receive their future structured settlement payments.

Structured Settlement Protection Acts

State laws that govern the transfer of structured settlement payment rights. As of this printing, every U.S. state save New Hampshire has passed such a statute. These laws provide for unprecedented levels of consumer safeguards prior to an individual being permitted to sell their structured settlement payment rights. This is so notwithstanding the fact that the original decision to accept a structured settlement is typically the result of a simple negotiation between plaintiff and defendant and not as a consequence of the independent judgment that a recipient is unable to manage their own financial affairs.

Structured Settlement

An arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim.

Structured Settlements are a cost-effective way for insurance carriers to settle personal injury claims on terms that are favorable to them. They are also often considered a convenient way to settle personal injury claims where there is disagreement over the size of a settlement, as the perceived value of future payments is generally higher than their true value.

Structured Settlements can also provide a significant benefit to you by providing you with a fixed schedule of low-risk tax-free payments. These benefits, however, may not seem so great when something unexpected happens in your life and your need for money now outweighs your need for money in the distant future.

Surrender Charges

Penalties assessed for withdrawals made in excess of the free withdrawal privilege during the surrender charge period of an annuity contract.

Surrender Schedule

The number of years and percentage amount of surrender charges applied to withdrawals from an annuity contract.

Tax Deferral

A postponement of current income taxes until a later date.

Tax-Deferred Interest

Interest that is not currently subject to income taxation.

Term Life Insurance

An insurance policy in effect for a specific period of time.

Term of Policy

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

Terms of the Structured Settlement

Includes, with respect to any structured settlement, the terms of the Structured Settlement Agreement, the Annuity Contract, any Qualified Assignment agreement and any Order or approval of any court or responsible administrative authority or government authority authorizing or approving such structured settlement.


A sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a Payee for consideration.

Transfer Agreement

An agreement whereby a Structured Settlement Payee or a Lottery Prize Winner sells, transfers or assigns all of their right, title and interest to receiving future Periodic Payments to a Purchaser or Transferee in exchange for a lump sum Purchase Price.

Transfer Expenses

All expenses of a transfer that a Purchaser deducts from the Gross Advance Amount they offer a Seller. Some companies charge Payees for court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions and notary charges.

Rising Capital will never charge you for any of these Transfer Expenses.


The person or company that is purchasing your Structured Settlement payment rights or Lottery Prize payments. Transferees are also known as Purchasers.


The person or entity that is selling or assigning their Structured Settlement payment rights or Lottery Prize payments to a Purchaser.

W-9 Form

A tax form for the United States which certifies an individual’s taxpayer identification number.

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