Structured Settlements And The Power Of Annuities

Title:
Structured Settlements And The Power Of Annuities
Word Count:
688

Summary:
A structured settlement is a type of financial settlement usually awarded to the victim of a p

The settlement is called "structured" because the initial award ($4,000,000 in this example) i

Keywords:
structured,settlement,lump,sum,cash,award,sell,annuity,annuities,finance,finances,financial

Article Body:
A structured settlement is a type of financial settlement usually awarded to the victim of a p

The settlement is called "structured" because the initial award ($4,000,000 in this example) i

If the settlement is structured to pay the victim $100,000 a year, the period of the settlemen

Many people think the paying party has to put $4 million into a bank account set up for the vi


That’s one way of setting up a structured settlement. From the point of view of the paying par

An annuity is a large sum of money set up to pay the recipient a fixed amount of money at regu

That’s almost true. The power of an annuity comes from the fact that it can be set up by depos

Before continuing, you need to remember these important points. The court ordered the paying p

U.S. law specifies that annuities can only be set up by independent, neutral third-party insur

To set up the structured settlement, the paying party does have to have to submit a lump sum t

For example, if the structured settlement account consistently earns 5% interest per year, the

If the paying party can find an account that pays 10% interest, it would only have to invest a

At 15% interest, the paying party would have a one-time investment of $666,667 in order to pay

As you can see, the more interest a structured settlement account earns, the smaller the sum t


If it seems that the paying party is getting off easy, consider these points. First, the payin
The resource below has more free information about how structured settlements work.

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