Structured Settlements companies | Structured Settlement Annuity
What is Structured Settlement Annuity?
A structured settlement annuities (“structured settlement”) allows a plaintiff to receive all or a portion of a personal injury, wrongful bereavement, or workers’ recompense settlement in a succession of profits tax-free interrupted payments.
Structured Settlement Annuities may also be used in non-physical injury settlements so that our clients can obtain tax-deferred profits instead of getting an instant and fully chargeable lump sum payment.
A Sage payment professional can direct you of your dissimilar prearranged settlement annuity options, which include:
- Fixed-Indexed Annuities
- Single-Premium Immediate Annuities
- Deferred Income Annuities
- Multiple-Year Guarantee Agreements.
How Does a Structured Settlement Annuities?
The decision to utilize a structured settlement must be made before finalizing the settlement agreement. Once both parties have agreed to the details of the structured settlement, the claimant releases the defendant (or insurer) from liability.
The defendant or insurer then pays the settlement funds to a third-party assignment company, which assumes liability and purchases an annuity from a structured settlement carrier. The carrier then makes a series of periodic payments based on a previously agreed-upon timeline and amount.
Structured settlements may be funded with proceeds from settlements of almost any size; in fact, many structured settlement providers will structure amounts as low as $10,000. The choice is ultimately the claimant’s, and many find that a structured settlement is much more beneficial than a lump sum cash payment.
Market-Based Structured Settlement Annuities
There are additional investment options available to claimants who may not be interested in a structured settlement annuity. To learn more, visit our Market-Based Structured Settlements page.
For more information about structured settlement annuity, click here.