A Structured Settlement Annuity is a contract issued by an insurance company as part of a structured settlement to fund the payment of damages for personal injury over a period of time. It guarantees the holder or annuitant a payment stream over a fixed term at a fixed rate of interest.
Unless otherwise specifically stated the Annuity is paid regardless of whether the measuring life is alive or deceased, meaning these payments are NOT life contingent.
Structured Settlement Annuities are sold by structured settlement annuitants to a broker at a discount in exchange for a lump sum payment. The broker, in turn, offers these Annuities for resale at a fixed rate of interest and fixed term to astute buyers such as you.
Structured Settlement Annuities
The structured settlement annuity is a type of disability insurance that is paid whenever someone gets into an accident. With this type of annuity, you are going to be able to receive a fixed annuity payment for a specific period of time. Most of the time, you are going to get payments for the rest of your life if you are permanently disabled.
Advantages of Structured Settlement Annuity
Whenever you receive payments from a structured settlement annuity, you are going to be able to keep the money without paying any taxes on it. Therefore, the effective money that you are receiving is going to be greater than if you earned the same amount of money from working a job.
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