If you are involved in a lawsuit and have the option to settle your case with an annuity funded structured settlement, you should really consider the benefits. While nothing can make right the incident which occurred that caused your injury, the income provided with the annuity can help with future medical bills and other expenses.
The income that is derived from a structured settlement is generally considered to be tax free income to the person that has the injury. This is in order to allow the most compensation to the injured party for their loss.
Whether you set up your annuity with a fixed term and income or a variable income structure, you can often times come out ahead with an annuity because if you were to settle for a lump sum payment, that money could be taxed at one of the highest tax rates that the law will allow. You can learn more about the 4 types of structured settlement annuities and the benefits of each type.
When you are thinking about your annuity based structured settlement benefits, one of the largest considerations that you need to take a look at is your future needs. If you have been permanently disabled, then you will still receive your Social Security and other benefits. However, those payments are not often enough to cover most of the basic needs you might have.
The income from the structured settlement can provide the difference and allow for medical expenses and other financial needs to be fully covered in the future. If you have a need that is 10 years from the settlement date, you can build a lump sum payment into the annuity that will cover that need. A good example might be a handicapped accessible vehicle.
When looking into using an annuity with your structured settlement, you really can’t go wrong. The income is guaranteed for a certain length of time and can often times exceed that period if the person is still alive, thus providing more income than the original settlement amount.
Choosing the right annuity company should be pretty easy to accomplish. With certain laws and regulations that require annuities to be set up in a specific manner, your income should be safe and secure for years to come.