What Is a Structured Settlement and What Are The Benefits

-



For many of us who have been through the Justice system. We know the huge slow churning wheel of time that seems to make many cases takes years to complete and agree upon mutual settlements. The court system can sometimes be a drag and proves to be even more expensive to see through a case than to being awarded a settlement. Many of this has changed with the introduction of Structured Settlements.

A structured settlement is a financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving periodic payments on an agreed schedule rather than as a lump sum. The increased popularity was due to several rulings by the IRS, an increase in personal injury awards, and higher interest rates. The IRS rulings changed policies such that if certain requirements were met then claimants could have federal income tax waived.] Higher interest rates result in lower present values, hence annuity premiums, for deferred payments versus a lump sum. Structured settlement payments are sometimes called periodic payments and when incorporated into a trial judgment is called a “periodic payment judgment."

What is Structured Settlement Annuities

An Annuity overall is termed as a fix amount of money paid yearly to an individual. Structured settlement annuities are complex contracts or products, paid out to injured parties in lieu of one large lump sum.The payee does not or will never own the annuity, but instead is controlled by the defendants insurance company.

Some Types of Annuities

Immediate Annuity

·                     An immediate annuity provides income right away or at least within a year after you buy it. You plunk down a big lump sum payment, which is also called a single premium, and start receiving an income stream from that money each month. For example, let’s say you receive a life insurance payment of one million dollars after taxes and you want to create a monthly income from investing that money in an annuity.

Differed Annuity

·                     The other broad category of annuities is a deferred annuity, where you receive income at a future date. You make one or multiple contributions during the annuity’s “savings phase” and then receive income either as periodic payments or as a lump sum during the “distribution phase.” So it’s similar to a retirement account where you set aside money that you access in the future.

Comments

Post a Comment

Popular posts from this blog

Auto and Home Insurance Comparison Review Spreadsheet

-
Image
What's up guys and girls. This is my auto, home insurance review spreadsheet. And this is something that has kind of grown out of necessity over the years I like to do this every two or three years just because life situations can change, insurance rates can change - it's good to keep them honest. You want to make sure you are getting the best deal and the most out of your money. And it takes maybe a couple of hours to do this. And if you could save yourself some money by doing this I think it's well worth it. So this is what I've come up with and I know you could go to a website and save your quote and all that stuff but what I've noticed at least since the last time I've done this and it's been a couple years and I'm getting ready to do it now some of them will give you a quote for an annual price some of them will give you your monthly price and some will give you a six month price so you got to sit there and do all the math to compare them and I just...
Read more

Mesothelioma Law Is There to Entitle the Patient His Legal Rights

-
Image
Whenever in any turn of life or profession, man is deprived of his rights or his rightful demand, then in all civilized countries and societies in the world there is specific law to take resort to. The law is the only medium for enforcing the right of the deprived. It is no exception in case of mesothelioma patients. There is mesothelioma law to enforce his legal right. In human body different organs are covered with a thin semi-transparent layer, which medically is termed as mesothelioma. Due to prolong exposure to dust particles this mesothelium gets affected with infections often leading to malignant carcinoma. In simple term, mesothelioma is the cancer of mesothelium. In industries which involve large amount of dust emission as part of the production process are bound to provide their workers with protective equipments and outfits, under mesothelioma law. In many industries where dust emission is part of the production process, the workers are either provided with poor standard d...
Read more

Best Car Insurance Rates In Virginia

-
Image
Car insurance rates in Virginia Virginia.The the driver to pay a $ 500 uninsured motor vehicle fee if they want to be able to drive without insurance, and at their own risk. This fee will be renewed when it expired car registration. Drivers who do not carry auto insurance, or pay the state a fee, their driver's license may be suspended or be required to meet an SR 22, the financial responsibility of the insurance certificate, and a reinstatement fee. Car insurance rates in Virginia car insurance policies that include: Bodily Injury and Property Damage Liability : The driver of another person or damage to property or if they are responsible for causing damage throughout. Insured / uninsured under : If you are involved in an accident and the other driver is not insured under the coverage enough to pay for damages pays. If you have an accident the driver was uninsured and has no coverage . There are several laws that are important to remember when shopping for car insurance in Virgini...
Read more