Structured Settlement Annuities

A structured settlement is a type of income annuity that is derived and negotiated from the result of a person or company winning a civil case.

Structured settlement annuities. Structured settlements are linked to annuities because they re considered an effective way to deliver money to people who need it but also need the discipline of a monthly or yearly payout. A structured settlement annuity ssa provides tax free periodic payments over a period of time specifically designed to meet an injured party s needs. Specialized consultants facilitate the settlement process as well as help design and negotiate the structure. Structured settlements for minors are usually paid through an annuity from a life insurance company just as for adults.

What is a structured settlement. The key difference between an adult owning a structured settlement and a minor owning one is control. The aggrieved party opens the process with a lawsuit against the defendant the goal is to gain compensation for illness an injury or death of a loved one that was caused by the defendant. A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity.

How structured settlements and annuities work in practice. Specialized consultants facilitate the settlement process as well as help design and negotiate the structure. A structured settlement annuity structured settlement allows a claimant to receive all or a portion of a personal injury wrongful death or workers compensation settlement in a series of income tax free periodic payments. Congress in 1982 passed the periodic payment settlement tax act which established structured settlements to provide long term financial security to accident victims and their families.

Pacific life is a member of the national. The defendant pays the negotiated settlement to the plaintiff. You should think in terms of winning a personal injury lawsuit due to a car crash. A structured settlement annuity ssa provides tax free periodic payments over a period of time specifically designed to meet an injured party s needs.

This process is as follows. Our definition of structured settlement annuities would be a financial product purchased for a plaintiff by a defendant or a defendant s insurance company as part of a legal settlement. The income tax free periodic payments made under these annuities provide for future medical expenses and basic living needs and can last for the lifetime of the injury victim and their family. However many legal settlements offer a lump sum payment option which provides a one time sum of money.