A Structured Settlement is essentially an agreement under which an
insurance company agrees to pay an individual a predetermined amount of
cash for a fixed length of time if the individual meets an accident.
The documents generated in a structured settlement include an
agreement, a qualified assignment, an annuity application, a court
order if a claim is made by a minor, and an annuity policy.
Continue reading "How a structured settlement annuity works" »
Structured settlements offer several advantages that make them a
popular choice with individuals. The foremost benefit of a structured
settlement is that it provides cash at regular intervals and the money
is free of state as well as federal taxes. As against this, the
interest accrued from investments made from money obtained through a
lump sum is subject to federal and state tax. Also, very often
individuals who come into money by acquiring a lump sum are unable to
invest it wisely and often spend it wastefully, this is not possible
with a structured settlement where small amounts are made available
periodically and therefore a person’s spending is regulated.
Continue reading "Why a structured settlement payment is a popular choice" »