A Fixed Annuity In Structured Settlement Annuities

There are many who prefer not to go to trial but instead settle litigation cases out of the courts. A settlement basically permits the defense to have a plan prepared wherein the plaintiff is very much compensated for their legal fees, time, other concerns and any financial need. Instead of paying out a big sum of money, a lot of these arrangements utilize  structured settlement annuities.

Essentially, a structured settlement annuity is basically a method for the plaintiff in order to have payments be received over a time period rather than one lump payment. A fixed annuity is specially created to offer income payment streams as based on a dollar amount. One of the main design benefits of such an annuity is that they are more than able to offer lifetime payments onto the beneficiary.

The annuity lifetime option does not solely allow a beneficiary to be given an income replacement for the rest of their life. It also offers peace of mind to whoever is the judge in a specific case. Since the income is assured not to run out, the judge does not need to be concerned with determining the proper lump payment sum which will last for the lifetime of the injured party.

One of the advantages of collecting structured settlement payment annuity is the fact that the insured will receive tax-free income payments. This is because the annuity is not owned by the recipient or controlled. Therefore, the annuity is then able to offer a consistently solid income stream which will go on as long as there is a need.

Another benefit which may not be immediately obvious to the annuity beneficiary is that the particular fund is professionally managed minus any input on the part of the recipient. Due to lump-sum sizable payments, a lot of people discover that they are very much incapable of handling such a large sum of money and so result on unknowingly squandering it.

Although a payout for a single lump sum appears appealing, this type of windfall is a bit hard to manage and could cause a lot more issues. All in all, the annuity structure allows one to receive guaranteed payments as long as there is a financial need.