A structured settlement is used to settle the tort claim between claimant and defendant. Generally such claim can be naturalize in either lumps sum cash or periodic payments. Usually periodic payment procedure known as structured settlement and have numerous advantages as well. It is totally tax free, steady flow of money, and suited in various circumstances.
Life with Period Certain or Life Annuity is plan that guarantees a payment of certain amount for number of years or till death. This considers being most efficient agreement because one thing is sure that you will receive money for longer period of time as long as your soul remains intact. Next your beneficiary will receive the amount in case of life expiry. But it’s all up to the lawyer how he brought up the case in front of judge.
Temporary Life Annuity also falls under the structured settlement category and very useful in most cases. This annuity plan pays over designated number of years and ceased upon death. Like Life Annuity there is no provision of being funds received by beneficiary after death. Therefore as long as you alive within assigned number of years this agreement will be valid.
Lump Sum/Life Contingent Lump Sum Annuity is yet another very popular type of structured settlement. Such annuity arrangement setup a lump sum payment that will be paid in near future. Suppose, five years into the future, a date is decided on which you will receive a certain amount. If you are not alive till that date your beneficiary will receive the payment on designated date. On the other hand an annuity with lump sum decided to pay on assigned date with compulsion of life expectancy .In this case your beneficiary will not receive a nickel.
Life Only/Joint Survivor Annuity: Life Only annuities plan pays on monthly basis for life with no beneficiary provision. The beauty of this plan is a hassle free flow of cash till rest of your life. A Joint & Survivor annuity also pay on monthly basis but having the compulsion that if the claimant died in any stage the beneficiary will receive the remaining amount monthly.
Life Only/Joint Survivor Annuity: Life Only annuities plan pays on monthly basis for life with no beneficiary provision. The beauty of this plan is a hassle free flow of cash till rest of your life. A Joint & Survivor annuity also pay on monthly basis but having the compulsion that if the claimant died in any stage the beneficiary will receive the remaining amount monthly.
All the annuities discussed above designed in view of your needs and circumstances. No matter what best suites you in terms of up-front lump sum payment with monthly payments or for how long you been paid . you should discuss every detail with your lawyer before agreeing on any settlement.
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