Structured Settlement Annuity

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Structured Settlement

Structured Settlement is in fact a legal settlement. This settlement is like paying out an annuity. Structured settlement usually includes some tax advantages for the receiver and a savings for whoever is paying.

Annuities are paid out in structured settlements. These annuities work instead of a large sum and paid out fast. The annuities are paid by the defendant’s insurance company. The company “buys” the annuity. And the type of the annuity determines the payee’s potentiality to receive the payments.

Types of Structured Settlement Annuities

Structured Settlement Annuities are classified as the following two types:

  1. Buy & Hold Annuity: If an insurance company holding the annuity gets bankrupt than they are still required to fill up the gap. But this is applicable only if the recipient has a buy & hold annuity.
  2. Guaranteed Assignment Annuity: It guarantees the annuity, but the recipient doesn’t get rest of the annuity if the insurer gets bankrupt.


How It Works

Structured Settlement Annuity is a complex term. So let me describe it easily by a flow of events:

Event 1: Suppose you work at some factory. One day you forgot to turn off a power switch of a lathe machine at the end of the day. A worker accidentally falls on the machine, the machine turns on, and the worker gets physically injured. This leaves the worker  injured & in impossibility to work in the future.

Event 2: The worker sues you, because if you turned off the power switch this might not have happened. It was your responsibility and you neglected it.

Event 3: So now the insurer settles for 5 million dollars. But instead of paying that money to the victim, they offer an annuity on lieu of 5 million dollars. And the worker gets named as the annuitant. But he will not own the annuity, your insurer will.

Event 4: The insurance company pays the victim in a monthly or yearly basis for his lifetime. It may contain lump sums at interval. But the worker gets financial support which he can rely on.

This is only a simple demonstration. But this is the main structure of getting or paying a structured settlement annuity. The annuity will be determined according to the type of the case.

And by the way… Did You Know that…

  1. Structured settlement annuities are declared as tax-free by the Internal Revenue Service (IRS)?
  2. Structured settlements usually get approved by the court and are encouraged by the Federal Government?
  3. These annuities are often bought for plaintiffs under the age of 18. This keeps the money safe until they are grown up enough to get it.

Financial writer Suze Orman stated about structured settlements that it “provides ongoing income”. And for that, annuity agreement plays a big shot role in structured settlements. But a wrong agreement may not let that happen. So always read your options before you sign that form.





  1. Salvatore

    October 3, 2015 at 9:48 pm

    In some cases, what a consumer perceives as negligence could actually be product liability, which is often an easier case to prove.

  2. Eugene K

    October 4, 2015 at 7:15 am

    If you are over 50 or have a weakened bone conditions, be on the lookout for muscle spasms, tingling or numbness, and continence problems. If you’ve suffered a fall, these could be an indication of a severe compression fracture.

  3. Benit

    October 5, 2015 at 3:47 pm

    Upon initial impact, there is minimal pain, but throughout the day, every day activities become more and more painful. Most often, people treat compression fractures with pain medication, rest, and immobilization.


      October 20, 2015 at 5:06 pm

      Yes, please get proper medical cares in such times..

  4. Morris

    October 6, 2015 at 6:28 am

    A herniated disc puts a large amount of pressure on the nerves, causing pain and tingling in the legs. Luckily, 90% of the time, treatment is simple. Non-surgical treatment such as pain relievers, muscle relaxers, and anti-inflammatories will usually resolve the injury.

  5. Jerrold

    October 7, 2015 at 9:19 pm

    Slipping backward due to ice or a puddle can cause severe trauma to the lower tip of the spine. Fractures are rare, but the coccyx, or tailbone can be bruised by the impact and pull at its surrounding ligaments. This damage can cause severe pain for as long as a month. Tailbone injuries are typically treated like most back injuries—with rest and pain relievers. Victims will sometimes use a cushioned device to relieve some of the pressure in the area when sitting down.

  6. Hank E

    October 8, 2015 at 5:34 pm

    The national discussion about gun control and gun violence always gets louder when there is a mass shooting. In the United States, mass shootings have been occurring with alarming regularity. However, a majority of injuries involving gun violence don’t involve mass shootings.

  7. Courtney

    October 9, 2015 at 3:15 pm

    If you have injured your back after a slip and fall accident, taking a few simple steps can help to determine if the property owner’s negligence was the cause of your injuries.


      October 22, 2015 at 2:09 pm

      Medical care should be your first priority after a slip and fall.

  8. Kian Dobson

    October 16, 2015 at 10:25 pm

    You have to know not only what damages you are claiming, but also what types of awards juries in your jurisdiction have been making. If, for example, you are in a very conservative jurisdiction where juries simply don’t make large damage awards, no matter how bad the injury, then you will need to temper your expectations on damages. If, on the other hand, your trial is or will be taking place in a county where juries award monumental damages for even a hint of injury, then you certainly will want to raise your settlement figures. Trying to calculate what a jury might award is difficult at best, but a ballpark is what you and your opposition might negotiate from.

  9. Johnny A. Fisher

    October 17, 2015 at 2:13 pm

    A big issue is how much to reduce your demand in response to the insurer’s offers. That is tricky, and depends on the issues in the case, how far away the case is from trial, and even the relationship between your lawyer and the defense attorney, if the case is in suit.

  10. Tim T. Lovins

    October 19, 2015 at 4:52 pm

    In making the initial demand, the big question is how much to ask for. The initial demand has to be big enough so that you have room to negotiate. If, for example, you want to settle the case for $80,000, and you demand $90,000, you have very little room to maneuver. As a general rule, your initial demand should be at least twice what you are looking to settle the case for, if not more. You have to give yourself room to negotiate.

  11. Jessica Pearson

    October 20, 2015 at 1:27 am

    The main advantage of a lump sum settlement is that you get the money now. If you need to pay off bills from the settlement, that is an important reason to get all of the money up front. So I will personally recommend a lump sum if your injury is not that bad.

  12. Wanda S.

    October 21, 2015 at 3:16 pm

    What are the chances of winning your case in a lawsuit at trial? You have to assess your chances of winning the trial realistically and objectively. In order to do this, you have to understand the evidence for and against you, take into account the credibility of all of the witnesses, including yourself, and have a good sense of what juries in your jurisdiction have been doing over the past few years.

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