Structured Settlement Annuity

You may be considering a structured settlement annuity, but there are some things you should know. A structured settlement is a term that refers to a deferred payment obligation resulting from the settlement of a personal injury claim. In many cases these settlements are paid out over time. There has been much controversy in regards to people who cash in a structured settlement annuity payment award. Structured settlement annuity, is just one part of a very large industry. Some people think it is not legal to sell their structured settlement or annuity payments. There are people who sell their structured settlement or annuity payments all the time.

Most people do not realize that a structured settlement annuity provide a large income stream to insurance companies. With a structured settlement annuity , the government can give large tax breaks to insurance companies. This is a great benefit to insurance companies when the settlement is structured to provide a means for the insurance industry to get these tax advantages. The idea is by structuring the payments of an injury award over time. This helps the injured person to receive long term support and in turn, helps keep these people off of welfare. When the insurance companies help keep these people off government subsidy, these insurance companies are providing a valuable public service. This is why settlement awards can help insurance companies get these tax breaks. Insurance companies can make money from the interest they earn from a structured settlement annuity.

Structured settlement annuity payments to the injured person is tax free. This income is not reported to the government (as income) in the first place. This is why it can be a win-win situation with a structured settlement annuity. When someone needs money for their own personal reason, they can now sell their structured settlement annuity. These companies make it possible to get large cash payouts that were not available before because of the insurance companies being inflexible. Now a person can convert their structured settlement annuity payments to cash for whatever reason they want.

When considering a structured settlement annuity or selling a structured settlement annuity, you should retain an experienced attorney. It is wise to have an attorney explain all the details involved with a structured settlement annuity and the process involved in selling a structured settlement annuity for cash.

You can do a simple online search for all the services and resources to help you make the right decision with your finances and a structured settlement annuity