Categories
- Arts & Entertainment
- Business
- Communications
- Computers
- Culture & Society
- Disease & Illness
- Fashion
- Finance
- Food & Beverage
- Health & Fitness
- Hobbies
- Home & Family
- Home Based Business
- Internet Business
- Legal
- Pets & Animals
- Politics
- Product Reviews
- Recreation & Sports
- Reference & Education
- Religion
- Self Improvement
- Shopping
- Travel & Leisure
- Vehicles
- Writing & Speaking
Information
What Is An Structured Settlement Exactly?
Submitted: 2007-01-17 16:17:15
Print this article | Tell a friend | For publisher |
It is an annuity issued by an insurance company. An annuity is the mathematical liquidation of both principal and interest. Why a structured settlement annuity is special is that it has a tax free payout. That is why a structured settlement annuity is used in lawsuit settlements. When a amount is determined (an award) the insurance company can take that amount, figure what the interest will be for the future and come up with a guaranteed amount that will be paid out over a certain number of years. That amount can be paid monthly, quarterly semi- annually, annually or in a number of lump sum payments. The annuity is a useful financial tool.
Speaking of the annuity as a useful financial tool, they are used to pay out large lottery and casino winnings. Many times you will hear of a million dollar winning only to found out that its paid over 26 years. Its more like a $325,000 winning plus interest add in to equal 26 payments amounting to a total of one Million dollars.
When selling an annuity such as a structured settlement or a lottery and casino winning, be sure to find an ethical broker or company to sell to. Once the sale is make you can’t get your annuity back.
Frank ReCouper Sr. is President of FDR Resources and has been in financial services for over 45 years. For more information: http://www.money-now.net/structured_settlement_resources.htm or http://www.rp-capital.com |
Article source: Expert Articles
Most Recent Articles in Structured Settlements category
- Make the Smart Choice With Senior Life Settlement - By: William Regal
Senior life settlement is a perfect way through which senior citizens can get cash to fulfill their urgent monetary needs. - Qualified Life Settlement: Your Financial Guarantee for Life - By: William Regal
A life settlement transaction enables the life insurance policy holder to get ready liquidity simply by selling off the policy. - Play a safe side with the help of Life settlement broker - By: William Regal
Though one can get a reliable policy from any policy provider but getting a reliable broker is really tough, as a reliable life settlement broker can make best use of the benefits of policy. - Get insured through Coventry life settlement - By: William Regal
Coventry life settlement is a good option for senior citizens who want money against their life insurance policies for a better and secure future. - Life Insurance Settlements - Sale of a Life Insurance Policy - By: Paul Sherman
Life Settlements! Sale of a life insurance policy!! - Don't Be in Such a Hurry to Sell Your Structured Settlement - By: Frank ReCouper
Remember why your structured settlement was set up in the first place. Was it to pay for medical expenses on a ongoing basis or to take care of basic monthly living expenses? If the reasons your structured settlement was set up for don't exist any longer, then you might want to consider selling it. - Sell Lottery Payment for Lottery Lump Sum - By: Dave Vesh
So, Should You Sell Lottery Payment? Have you always been dreaming about buying those sports cars that sell for thousands of dollars? Did you think the lottery payment can fulfill your dreams? - Structured Settlement Annuity Sale for Lump Sum - Should You Get Your Cash Now? - By: Dave Vesh
What If You Do Not Want to Wait for Your Structured Settlement Money?When structured settlements are awarded from lawsuits such as product liability, personal injury, or accidents, in general an insurance company buys an annuity. This annuity pays a mixture of principal sum and an interest over an agreed period of time at a schedule that is agreed with the structured settlement payee. - Buyer Of Structured Annuity Settlement - How To Find the Structured Annuity Buyer That Suits You - By: Dave Vesh
Annuities are important and valuable policies for many senior citizens in the USA. Sometimes, however, any one of us may have need to plan for the future differently. Our plans may change, we may require cash fast and decide to sell the annuity or part of it for a large lump of cash. - Best Ways To Sell Annuities - By: Scott Walker
Do you no longer need consistent monthly payments and would instead prefer a lump sum? If so, then you should think about selling your annuity. Besides the reason I already mentioned there are several reasons why you would want to sell your annuity.