What Is A Structured Settlement Annuity?

If you were in legal proceedings to be awarded a settlement, you may have heard certain terms thrown around, and one of them was probably structured settlement annuity. This is just another term for a structured settlement payment, which is what you would be receiving if you were awarded a large settlement. Payments are ordered for any settlement which could financially ruin the person or company that must make amends. Legal issues and lottery winnings are two of the major players in making annuity payments. Individuals who have suffered personal injury or won a substantial amount of money in a lottery can expect to see monthly annuities paid to them. In lawsuits which are related to personal injury, the monthly annuity usually is equal to, or greater than the person's average living expenses. This ensures the person can continue to make their monthly bills and provides for their necessities. Some individuals will sell their entire settlement award to companies which will give them around 60% of the remaining balance awarded. This will allow the recipient to get a lump sum of cash, and not have to deal with the monthly annuities. Selling a settlement involves a lot of legalities, so it is advised that you consult someone qualified to handle the deal for you. Trusting the company which wants to purchase your settlement is not a wise thing to do. They are interested in making money, and are not looking out for your best interests. It is well advised that you consult with your attorney, or hire a settlement broker to handle the transaction for you. There is a ton of paper work which goes into making the deal legal, and sometimes the entity paying the annuity may not want to work with the company buying the settlement. They can hold up the process of transferring the structured settlement annuity a long time if they are not satisfied when dealing with the company. For this reason, it is best to sell with a broker, or sell it with your attorney handling the deal.