Structured Settlement Annuity

Why Choose A Structured Settlement Annuity.

If you have been in an accident and are expecting to receive a substantial amount of money for your injuries a structured settlement annuity may be the best way to go. There are many perks to receiving a structured settlement annuity as opposed to receiving a lump sum of money. HAving the right knowledge will help you decide which option is best for youA structured settlement annuity allows you to receive your money over a period of time. Many structured settlement annuities allow you to draw income monthly or on another set regular basis. Depending on the amount of money that you are to receive, and your age, this income could very well last for the rest of your life. They also help you to budget your money better so that you can insure that your monthly obligations are met.

Many structured settlement annuities allow you to draw income monthly or on another set regular basis.By choosing a structured settlement annuity instead of a lump sum payment you can often reduce your out of pocket fees as well. Lump sum payments often require court dates which require court costs to be paid. And lawyer's fees tend to be higher when you have to make an appearance in court as well. Another reason that a structured settlement annuity is a good idea is because of tax purposes.

If you take a lump sum payment you will be required to pay taxes on any interest or dividends that you receive on the money. However the money that you receive from a structured settlement annuity is not taxable. This is true for both state and federal taxes.There are many other reasons that you should choose a structured settlement annuity over a lump sum payment. However since each individual is different you should talk to a lawyer before making your decision on either option.