What Is A Structured Settlement Annuity

To carry out these periodic payouts the defendant will often purchase an annuity from an insurance company.

What is a structured settlement annuity.

Structured settlement annuities can blend together different types of payment streams to address unique known or predictable needs in a single annuity contract. 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. When used properly they can be a very effective tool for protecting a settling plaintiff s long term financial security. 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.

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. The company is a member of the national association of settlement purchasers. 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. 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. Fairfield funding has been in business for 12 years and focuses on structured settlements and annuity payments. Around the time that a personal injury settlement is reached the liability insurer will almost always bombard the personal injury victim with proposals for structured settlement annuities.

Structured settlement annuities are designed to offer the benefits of a structured settlement while reducing or eliminating the potential drawbacks. 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 key difference between an adult owning a structured settlement and a minor owning one is control. The annuity is an irrevocable stream of regular payments from an insurance company that is structured in a way dictated by the court system.

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.