What Is A Structured Settlement Annuity

Structured settlement as an annuity.

What is a structured settlement annuity.

After the settlement money is negotiated and come to final terms the court order will request the funds to be placed into a type of income annuity contract called structured annuities. Structured settlement annuities can blend together different types of payment streams to address unique known or predictable needs in a single annuity contract. When used properly they can be a very effective tool for protecting a settling plaintiff s long term financial security. The company is a member of the national association of settlement purchasers.

Instead of paying a lump sum cash only settlement the liability insurer proposes to pay the settlement through structured payments over a period of years known as a. How does a structured settlement work. Structured settlements for minors are usually paid through an annuity from a life insurance company just as for adults. To carry out these periodic payouts the defendant will often purchase an annuity from an insurance company.

This is a big difference between structured settlement annuities and retirement annuities. Structured settlement annuities are designed to offer the benefits of a structured settlement while reducing or eliminating the potential drawbacks. The key difference between an adult owning a structured settlement and a minor owning one is control. A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity.

Fairfield funding has been in business for 12 years and focuses on structured settlements and annuity payments. However many legal settlements offer a lump sum payment option which provides a one time sum of money. Instead of receiving all the money in one lump sum the plaintiff puts their money in an annuity which is a type of financial contract. A structured annuity also known as a structured settlement or a periodic payment judgment is an annuity or group of annuities with a very short accumulation phase funded by a lump sum payment similar to a single pay annuity.

That way the defendant can remove your obligation from its books and transfer the responsibility for payment to a company with expertise in managing periodic payments.