Annuity Structured Settlement â€“ An Overview
Annuity can be defined as an insurance product that pays out income and also can be used as a part of retirement strategy. An annuity is an investment that have made either by installations paid for a certain number of years or by a single lump sum for which, in return, you receive a specific amount of money after every year or six months or on monthly basis. One of the common forms is annuity structured settlement. For those who are unaware about the term, here is being given a description.
Settlement annuity: Structured settlement annuity refers to a contract between a buyer and insurance service provider. According to the agreement â€“ an insurance service provider needs to pay the client a cash amount for a fixed period in case of any mishap. Documents required forstructured annuity are enumerated as under: â€˘
Application form of annuity
Annuity policy and
Court order only when a minor claims for
Structured settlement annuities provide payments over a certain time period without any tax. It is designed particularly for fulfilling requirements of an injured annuitant. A specialist broker can provide ample facility to the party by fixing the process of settlement. Payments of premium for structured structured settlement annuities can be paid in varying cash amounts, equal installments and in huge sum at a time. It is a guaranteed agreement received from end of insurance company. Features of structured settlement annuity: Unique features of the product are stated below: •
Streamed free taxable payments for a fixed time period
Fixed income financial assistance annuity from an insurance
service provider and •
Specifically meets financial needs of injured client and family
which include replacement income and medical expenditure as well. Structured settlement investments: As interest rates remain low these days, investors – especially retired persons struggle to find supports for extra interests from everywhere. A recent offer is gaining popularity gradually named structured settlement investments offering no risk rates in return. With such investment offerings higher returns can be generated potentially, not via a risk premium but via a liquidity premium. Conclusion:
Since settlement annuity is based on long-term process, it is important that you get credentials from the service provider. Prior to getting into any settlement, it is advised to check with few service providers, compare their rates and finalize on an appropriate product meeting your specifications for the same.
Published on Apr 13, 2013
Annuity can be defined as an insurance product that pays out income and also can be used as a part of retirement strategy.