Thursday, December 14

Structured Settlement Annuities And Retirement

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Structured Settlement Annuities And Retirement

Structured settlements are agreements in which an insurance company or,  in situations involving a tort case,  another party recompenses an individual a previously discussed amount of money for an allotted amount of time. These actions are usually taken in response to an accident or liable, on the part of workmen’s comp.  Also annuities can take another form, such as investments in stocks and or bonds in order to provided added securities to present and future investments, which you can buy at an insurance company.In order to be compensated for injuries, in which another party is liable, or to protect and increase retirement savings and funds, there are steps and precautions that need to be understood and taken.  This web page will provide procedural and basic implementations in order for you to have the information that is needed to make, follow through, and benefit from structured settlements and annuity claims.

Structured settlements payments are separated into varied or equal amounts of payments over a span of time. But there is another option, as previously discussed, there is a third option in which you can receive all of your structured settlement at once. And that action is selling structured settlements. Companies like J.G. Wentworth buy structured settlements and give you the “lump sum” of your money. Of course there is a percentage taken out by the company, but it is a small price to pay for all of your payments at once. This option is especially great for individuals who need their settlement now and can not wait for every payment. Some prefer the payments over time, it is constant and reliable income that they know will come through. And by allowing these payments, there isn’t a risk of completely obliterating the whole sum of your money anytime soon. But to each his (or her) own. Which ever option is better for you, decide and be content.

Rather you want to buy structured settlements or you are selling structured settlements, and your new at this, it always helps to start at the beginning.

First, as stated in my introduction post, structured settlement payments are to satisfy injury claims issued to liable parties, from insurance to workman’s comp. Structured settlement payments can be dispensed three ways.

1. Equally: meaning that compensation would be disperse in even cash amounts over a period of time.

2. Varied: meaning that compensation would be dispersed over time, in varying amounts.

3. And finally, Lump Sum: meaning you obtain all of your structured settlement cash at once.

All settlements must have a predetermined amount to be paid, so what ever you agree to, on paper, is what you will be receiving. The structured settlement cash is free from income-tax and are generally guaranteed by contract.

Structured settlement annuities are long term financial security, so it is very important to verify and research the credentials of your annuity provider.

How often  structured settlement payments are issued, is a fact that is entered on the settlement agreement that you must adhere to. The amount of the settlement cn be determened by taking thes factors into account; the date of commencement of payment, duration of the settlement payments, and how often these payments are made; your present age, the extent of the danger and hazardous conditions of your occupation, and retirement plans.

For the settlement payments, or pension, to remain tax free, the paymentes that you’ll receive for your personal injury claim should not be altered after both parties have agreed on settlement. And don’t be surprised if a third party disperses your payments. The insurance company can transfer this obligation to another party, but you’ll still receive your structurred settlement.

Now, if you have chosen a structured settlement then you should now that if the payments are made to an estate then while still being free from income-tax there are however not free from estate tax. federal laws estate that a court order is as to be obtained by either the customer or the liable party in order to make the structured  settlement remains tax free. These actions and more are regulated by the structured Settlements Protection Act.

A disclosure statement must be issued three to fourteen days before the transfer agreement. The disclosure statement mentions how much will be paid and when these payments will come to the customers hand. It is recommended that a lawyer be present for these proceeding’s. Someone on your side who can sift through the muddled language and double talk and obtain for you whats need in your settlement.

Find what choice is best for you and go for it. There is no reason why your retirement can’t be as comfortable as when you were working.


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