Eleven things you didn’t know about structured settlements and annuity payments

Eleven things you didn’t know about structured settlements and annuity payments

What is the difference between annuity and structured settlement? Annuity is money set aside for later use. For example, if you inherit money or win the big lottery, you can open your annuity and rely on payments on a date in the future. A structured settlement is money from an account that has never been, but I own because of the lawsuit or the settlement of the class action. And that money is given back to you in increments over a certain period of time.

With most annuities, since them, you can withdraw all or part of the money if you need to. With a structured settlement, you have to wait out payments or sell it to someone else in exchange for a lump sum, less than the original amount.

There are investment companies who specialize in buying annuities and structured settlements. If you have the premium type that does not allow you to take over specific payments, you can sell it to one of these companies. It will give you a lump sum and collect payments until runs out the annuity. Feature you cash to buy more hand. Advantage that it eventually will receive the full amount of the premiums while also benefit from accrued interest as payments come. The same people who buy annuities also purchase structured settlements, and for the same reasons.

1. you can set the payment rate in the annuity, but not to settle.

2. interest accrued on the account while you are on the taxpayers won’t get.

3. you can choose the amount of principle for annuity and not settle.

4. you don’t have to be a genius to manage payments or your structural adjustment. Once the initial payment (or payment) go to the account, the money comes to you on a regular basis.

5. with some structured settlements that have to spend the money in a certain way. For example, if a class-action settlement because of a medical problem, the money spent on medical bills.

6. If you want to make extra money from the payments, you can invest.

7. unless otherwise specified, you can use the money any way you want.

8. If you sell the account to the company, the money is yours to do what you want.

9. pensions and structured settlements can be a great feature for long-term needs.

10. once the account is emptied or sold, you have no claim on it.

11. annuity can be in your name, or to someone else. Like legacy.