Annuity Settlement: Installment Settlement

2007-03-08 10:33:40

( Insurance )



LEGAL PENSION

An annuity settlement is a periodic payment that you receive for winning a personal injury, product liability, or other cases of similar nature. The annuity settlement is the compensation that the court has ordered the liable party to pay you for sustaining some form of injury or damage.

An annuity settlement can also be a result of accepting a cash settlement offer from the liable party. In this case you agree to the amount they are willing to pay and the terms under which the payments will be made. Here the cash settlement is offered in exchange for dropping or withdrawing the lawsuit.

An annuity settlement acts more like a pension fund. The money will not come to you as a single lump sum, but rather will arrive in staggered form which you will receive on a regular basis until the cash settlement has been fully paid. Unlike a lump sum payout which is given in go, an annuity settlement payment is in the form of fixed installments over a fixed frame of time.

BENEFITS OF ANNUITY SETTLEMENT

Opting for an annuity settlement may be your only recourse if the liable party has no means to pay the full amount that they owe you. While receiving a lump sum provides you with more options, agreeing to an annuity settlement also has its benefits.

For one thing, you do not run the risk of spending all your money because you receive them piecemeal. If you are the type of person who has some issues with spending, then an annuity settlement is the safe way to go.

Annuity settlement guarantees a steady income stream over the long term. This arrangement affords you the luxury of taking it easy assured that you have money on the way to get you through all your needs with some left to spend as you will.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.