The Benefits of Structured Settlement Annuity Payments

The Benefits of Structured Settlement Annuity Payments

Getting injured in an accident or becoming disabled due to medical malpractice can ruin your life and the lives of your loved ones. But if you have taken it to court and won your case then there is hope. This hope comes in the form of structured settlement annuity payments. Read on to discover a little more about this type of payment structure and how it will benefit you and your family.

Structured settlement annuity payments are the payments that you will receive after you win a lawsuit. These annuities are an alternative to getting a one time lump sum from your settlement.

So why are structured settlement annuity payments better than a single lump sum? The reasons can be as diverse as the person receiving them. Let’s look at a few of the benefits of structured payments.

1. Structured settlement annuity payments will allow you to have income over a lifetime. You will be guaranteed a monthly or yearly check for the duration of your life.

2. These payments can be used for living expenses, medical bills or medical equipment, education or however else that you see fit.

3. A structured settlement payment plan will prevent you from spending your whole settlement in just a few short years. Unfortunately, a lot of people have no constraint when it comes to spending, so a payment plan will do away with the temptation to spend your money foolishly.

4. A payment plan also deters friends and relatives from asking for a loan or a handout. It is amazing how many friends you will discover when you come into some money.

5. Money received from structured settlement annuities are not taxable. This simply means that this is not considered income and will not be taxed at the end of the year.

6. If the recipient of a structured settlement is already receiving social security, the income generated from these payments will not affect your social security benefits. Social security cannot decrease your benefits because you are receiving structured settlement payments.

7. Structured settlement payments can be customized on a yearly basis to factor in for cost of living or additional expenses that may become apparent. That means that you can request that your payment amount be raised.

8. Structured settlements are protected from creditors and divorce. You cannot lose any amount of your settlement to a creditor that sues you or to your spouse in a divorce proceeding.

So if you are injured and have won the case, your attorney may talk to you about structured settlement annuity payments. Listen to his advice and the advice of a good financial advisor. A structured settlement may be the best way for you to receive your payments.