Are fixed annuity structured settlements the best option for you to choose? With so many economic concerns and issues these days, you really need to know your options.
A fixed annuity structured settlement is funded by an insurance company. The insurance company provides a set income to you in exchange for a lump sum from a third party, if the purchase is from a lawsuit.
The fixed annuity gets its name from the fact that the income is a fixed payment based upon set terms. This means that for the length of the annuity, your income is a guaranteed payment each month, or however you set it up to pay out.
You can also have a fixed annuity that can pay out a lump sum payment during the term of the annuity. This is especially great news if you know you are going to have a large expense at set times during the life of the annuity.
If for example you know you will need a home modification or a new accessible vehicle, you can structure the annuity to pay a lump sum at that time to cover the cost of the expense.
Another reason an annuity is considered a “fixed” annuity is based on its type of investment. By having a fixed annuity, the annuity is based on a secure means of investment, often times a government bond or other steady and safe investment.
Choosing a fixed annuity over a variable annuity is often times the best choice you can make. Especially with the volatility of the stock market, which is what a variable based annuity is funded from, you don’t want to risk your income.
If you are looking to have a steady income for life potentially, then a fixed annuity structured settlement is the most secure option for you to look into. With the tax benefits, guaranteed income and safety of knowing your income is set no matter what, the option is still yours to choose.