However many legal settlements offer a lump sum payment option which provides a one time sum of money.
What is a structured settlement annuity.
When used properly they can be a very effective tool for protecting a settling plaintiff s long term financial security.
Fairfield funding has been in business for 12 years and focuses on structured settlements and annuity payments.
A structured settlement annuity is a way for someone who wins a legal settlement to receive the payout.
Instead of receiving all the money in one lump sum the plaintiff puts their money in an annuity which is a type of financial contract.
Structured settlement annuities are designed to offer the benefits of a structured settlement while reducing or eliminating the potential drawbacks.
Structured settlements for minors are usually paid through an annuity from a life insurance company just as for adults.
The company is a member of the national association of settlement purchasers.
A structured annuity also known as a structured settlement or a periodic payment judgment is an annuity or group of annuities with a very short accumulation phase funded by a lump sum payment similar to a single pay annuity.
A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity.
The key difference between an adult owning a structured settlement and a minor owning one is control.
After the settlement money is negotiated and come to final terms the court order will request the funds to be placed into a type of income annuity contract called structured annuities.
That way the defendant can remove your obligation from its books and transfer the responsibility for payment to a company with expertise in managing periodic payments.
How does a structured settlement work.
Structured settlement as an annuity.
To carry out these periodic payouts the defendant will often purchase an annuity from an insurance company.
Instead of paying a lump sum cash only settlement the liability insurer proposes to pay the settlement through structured payments over a period of years known as a.
This is a big difference between structured settlement annuities and retirement annuities.