What Is A Structured Settlement Annuity

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.

What is a structured settlement annuity. Structured settlement annuities are designed to offer the benefits of a structured settlement while reducing or eliminating the potential drawbacks. Structured settlement as an annuity. 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. When used properly they can be a very effective tool for protecting a settling plaintiff s long term financial security.

To carry out these periodic payouts the defendant will often purchase an annuity from an insurance company. How does a structured settlement work. Fairfield funding has been in business for 12 years and focuses on structured settlements and annuity payments. 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.

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. The annuity is an irrevocable stream of regular payments from an insurance company that is structured in a way dictated by the court system. 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. This is a big difference between structured settlement annuities and retirement annuities.

Structured settlements for minors are usually paid through an annuity from a life insurance company just as for adults. A structured settlement annuity is a way for someone who wins a legal settlement to receive the payout. However many legal settlements offer a lump sum payment option which provides a one time sum of money. The company is a member of the national association of settlement purchasers.

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.