How does......

by yogesh0505 » Tue Sep 23, 2008 05:05 am

How does a structured settlement annuity works

Total Comments: 5

Posted: Tue Sep 23, 2008 06:22 am Post Subject:

Hi,

A plaintiff may have the option of settling a case in return for a large sum of money. There are a couple of parties who'd assist or guide him to pay it over time in installments. This would reduce his hassle of paying a large sum upfront. Such parties would involve-

* The attorney
* The defendant
* The finance planner
Such payments are termed as the "structured settlement".
Thanks, Evan

Posted: Tue Sep 23, 2008 09:21 am Post Subject:

Yes, when it comes to insurance a structured settlement is described as a fixed payment from the carrier to the policy holder who has some how experienced an accident. Such docs would include -

an agreement, a specific assignment, an annuity proposal, a court appeal from the minor. Such payments could even be made throughout the life of the policy holder. ArindamSenIndies

Posted: Tue Sep 23, 2008 11:13 am Post Subject:

Such payments could even be made throughout the life of the policy holder.


You could go for such payments through different installment schemes - equivalent installment schemes & variable installment schemes. However they could also pay the amount in its entirety. Such payments are tax-free & are bounded by the terms of the contract. Roddick

Posted: Tue Sep 23, 2008 11:26 am Post Subject:

Hi..one would need to mention the payment durations within the contract. There are several factors that would influence your decisions regarding the selection of your payment cycle periods. Such factors would include the following-


  • Your expenses each month
  • The probability of hazardous risks associated with your job
  • Your current age
  • Your retirement programs


You would not have the choice to change the payment cycle once its established. This is done to keep the payments tax-free with the consent of both the parties. Hope you all got that! Fatman

Posted: Tue Sep 23, 2008 01:04 pm Post Subject:

Hi..I'd rather believe that we need to know more about certain factors once we are going to choose a structured settlement contract. Estate tax is to be charged on payments directed towards the estate payments, but such payments are income-tax free. Your pocket would definitely be affected through purchasing a structured annuity.
Roddick

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