A structured settlement is probably the best way to rest your financial case in conditions where you have to receive a settlement amount. It is especially helpful when an accident leads to your injury. To have a better understanding of structured settlements, you should know how a settlement is defined. Settlement is nothing but the amount of money which you receive in return of some kind of accident as a financial obligation. A structured settlement will give you the same amount of money but not as a lump sum. The money will be given to you in the form of structured payments which will be sent to you regularly. There is a reason why most people suggest that you go for a structured settlement instead of taking one lump sum payment during the time you receive money from a personal injury lawsuit. A structured settlement annuity will also be helpful in cases other than injury cases.
People bash structured settlement annuities and say they are not worth one’s time because of many reasons such as the interest rates are too low or other investments offer better, much more profitable returns. What they ignore is the fact that other investments are also quite risky and unless you understand all the risks and their consequences, an annuity based structured settlement is a very safe option. There are numerous benefits of choosing structured settlement annuities for many purposes. These include:
- You can never outlive your insurance by the annuity way – if you are worried you may outlive your savings, an annuity based structured settlement is a great way to ensure that you will always have enough money for yourself. It is a practical solution for various troubles which a lump sum payment has.
- You will have a higher income – a structured settlement annuity will give you a higher income when compared to other conservative and traditional methods. There definitely are investments which offer much higher returns but they also come at a very high risk. An annuity based structured settlement will give you a higher income at a reduced risk when used correctly.
- You can pass the money to your heirs – most annuities can be inherited via contract so if you want to pass your money down to others during the event of your death, going for a structured settlement annuity is a great option.
- It is an easy investment – you don’t have to know a lot about finances if you are investing in structured settlement annuities. There is no management knowledge required and you can simply relax. You will have absolutely no responsibility of maintaining anything when it comes to structured settlement annuities which is a great thing for those who neither have experience nor the vigor to do extra..
- You can go for a safety structured settlement – a safety structured settlement offers to be a safe complement for your portfolio. You can trust it without any problems because a safety structured settlement will always be a safer and risk free addition.
- You will get reasonable returns – if going for a risk free policy and still getting nicer than average returns is your preferred way, structured settlement annuities are a great method to do that.
- You save money on taxes – a structured settlement annuity saves you money which you would lose if you went for another insurance policy. Usually large returns come with numerous taxes as well but a structured settlement comes without any of the most prominent taxes. These include income taxes (which are usually the highest and the most discouraging factor for any investment).
- You become a lifetime recipient of guaranteed funds – you will have the guarantee of getting paid on a lifetime basis. This means you will receive funds till the day you die and will have a source of income for the entirety of your life. The significant cash flow throughout your life is definitely a plus many would appreciate.
- There is no ongoing fees – structured settlement annuities are a type of investment where you don’t have to pay any fees. It is a simple, tax free, and risk free investment which allows you to earn money without paying taxes and working extra.
It is possible that you don’t want to invest in lifetime payments but want to create a new kind of scheme with higher cash flow. You would be glad to know that this can be done by coming up with creative and flexible plan designs you can receive income for only a certain time period but probably earn more than you would if you go for a lifetime payment plan. This is why it is of extreme importance that you go and communicate your wants and issues to a licensed structured settlement broker who is skilled enough to come up with a plan that suits you. A total structure settlement is not the best choice if you have large cases but if you have access to someone who knows how things are done, then you can decide which option is the best one for you. As a client, you should definitely ensure that your structured settlement adviser is someone with experience, skills, and good intentions.