A Structured Settlement Annuity- Periodic Payments over a Period of Time
Transcript
- 1. A structured settlement annuity is a situation where in a particular insurance company releases cash installments as compensation to an injured person who suffered an accident. Cash payouts are given in a periodic time or in installment.
- 2. Structured settlement annuity is generally a long duration agreement. Bear in mind. It is highly important to properly understand the different components like the amount per every payment, payment schedule, policies and settlements and more.
- 3. A monetary agreement between an individual and an insurance company is called as an annuity. The person injured can either choose to receive a specific sum at a lump sum or periodic time. Today, you can find lots of companies who prefer to buy or sell structured settlement annuity in exchange of cash.
- 4. Structured settlement annuity can be clearly interpreted as a person under certain circumstances the insurance company to release cash installments of one who is qualified if he or she paid an unexpected accident. In this case, cash payments will be given in installment or every period. Generally, the claimant can receive this cash as long as she or he lives.
- 5. • Fixed rate investments • Fixed income over a defined period of time • To increase the yields in personal holdings, to maximize income at retirement, or to preserve principal for future years. • The Future Payments Will Be Discounted To The Present Value.