If you’ve been injured and are in the process of claiming structured settlement money through the defendant’s insurance company, you may want to consider an annuity structured settlement.
This structured settlement functions just like an annuity. But what are annuities? These are insurance packages to help people manage their incomes during retirement. People pay an annuity lump sum when they purchase their annuity, and then when they reach the age of retirement, they start to receive monthly payments — it’s as if they’ve never stopped working!
People generally have a strong loyalty to their annuity purchases, around 93% in fact still own their first annuity. You will also be very pleased and committed to your annuity structured settlement, if you opt for one.
Structured settlements, on the other hand, are mostly used in product liability or injury cases. If you’ve been injured on the job, you can claim structured settlement money. More than a third of personal injury claimants are given a structured settlement. However, most of the time it is paid in the form of a structured settlement lump sum — meaning you will receive the entire amount of money you’ve won all at once.
This may seem quite appealing at first, but this money could be subject to massive taxation. Most people also don’t know what to do with all the money, and end up spending or investing it unwisely. Instead, an annuity structured settlement will be able to help you manage this claimed money.
Annuity structured settlements are the best of both worlds. They provide tax-free, periodic payments over a period of time (usually for the rest of your life) and are designed specifically for your needs.
For instance, say you’ve slipped and suffered moderate brain damage that requires fixing, and this means medical bills. This type of insurance investment will be able to help you pay off these medical bills every month so you don’t have to keep digging into your savings account.
Structured settlement brokers and other specialized consultants will facilitate the settlement process and will also help design and negotiate with the defendants insurance company the structure of your settlement.
Obviously, the claimant is reaping the benefits from a customized insurance plan, a stable source of income, and a secure place to house the money. Yet what about the defendant? There are also many benefits. For example, annuity structured settlements lead to faster settlements in or out of court. Opting for this may also reduce costs for the defendant and avoid Jury trails. For some people, opting to settle a case this way may lead them to qualify for a tax-deduction. Read this for more.
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