A structured settlement is a form of annuity that pays annual, quarterly or monthly payments to someone who received a settlement from some type of accident, medical malpractice, wrongful death lawsuit, defective product settlement that caused harm or injury, auto injury settlement or any other type of personal injury settlement.
Many insurance companies negotiate with attorneys to payout a claim to the attorney’s client in installments, usually monthly, thus protecting the client from spending all the money at once or mismanaging the funds, as they never had such a sizable amount of money before. Studies have shown that many people cannot manage money won in lawsuits so they elect this structured settlement option to protect themselves. Most people that are receiving a form of monthly payment won in court don’t actually know that they have what’s known as a “structured settlement”. Rather they just call it their monthly check from the lawsuit.
Structured Settlement is a form of Annuity
Anytime that someone is receiving a monthly check for life or for a period certain, what they are actually receiving is an annuity stream of income. That’s what some annuities do; they provide monthly income for life or a period certain. There are other kinds of annuities that do not pay monthly income right away, however we will discuss the structured settlement annuity stream for now and discuss other kinds of annuities later.
Wrongful Death Structured Settlement
When someone dies and it is the fault of another person or corporation, a wrongful death lawsuit is filed in the court system. Either the person or the company and/or their insurance company are named in the lawsuit. As everyone knows, insurance companies don’t like to just handout lump sums of money to people, so when they lose a lawsuit, they would rather pay out the funds over time so that they can continue to benefit from keeping most of their funds invested over time. Everyone can certainly agree that this is a good choice for the insurance company, but it also can be a good choice for the person that never had a million dollars before. The annuity stream of payments stretched out over the years protects the person who really doesn’t know how to manage a lump sum of that magnitude.
Direct Annuity Stream Protects Beneficiary
Let’s say a person is involved in a medical malpractice lawsuit and won a large settlement because they were paralyzed from the waist down due to a medical professional error. That person may have difficulty in earning a living going forward, so the attorney and the insurance company recommend a structured settlement that pays monthly so that the injured doesn’t squander the money that he or she will need to live on for the rest of their life. In this kind of case, a structured settlement is a good choice to protect the injured and their family for life.
Personal Injury Structured Settlement
Many people in the United States are injured on the job or on someone else’s property and suffer permanent physical and mental harm and wind up filing a lawsuit utilizing the services of a Personal Injury Attorney. Many people can never work again and need monthly income to survive. Rather than taking a lump sum, which can quickly disappear, they opt to take the annuity payments in the form of a Structured Settlement.
Selling Your Structured Settlement
Sometimes after people take the structured settlement monthly income option from their lawsuit, they later decide for a multitude of reasons that they wished that they had taken the full lump sum from their settlement. Whatever the reason, they now want the total amount of the settlement. There are certain companies that now buy peoples monthly annuity payout. Here on this site you can find companies that will pay you the lump sum in exchange for the monthly or annual payments you currently receive. Please feel free to contact us as well for a list of companies to choose from that may have an interest in buying out your existing structured settlement. info@AnnuityDirect.com or call us at 561-543-6625.
Different kinds of Annuities
There are all kinds of annuities, some that pay immediate income and some that grow tax-deferred until such time you need to take a distribution of cash or turn it into a stream of income. Most consumers have mixed feeling about annuities or are at best, very confused what an annuity really is. For some, it’s a stream of income, for others it’s a tax deferred savings program. There are fixed annuities, variable annuities, indexed annuities, immediate annuities, single premium immediate annuities, some with guarantees of income for life, or guarantees of lifetime income for both husband and wife. Some only pay income for a period certain, which means that once you expire, the income just stops and no one gets any further payments.
For greater explanation, please see our Definitions section explaining all the different types of annuities out there in the marketplace. If you would like to speak to someone personally, please contact us at 1-561-543-6625 or info@AnnuityDirect.com. If you live in the state of Florida and are interested in purchasing a Fixed or Indexed Annuity, please call Keith Shanahan at the same number, 1-561-543-6625 or info@AnnuityDirect.com.