STRUCTURED ANNUITIES: RECEIVE IT PERIODICALLY OR SELL IT!

2007-03-08 10:33:40

( Financial )



Structured annuities are cash payments made periodically, usually every year, to winners of lottery and contest, and to recipients of life insurance payments and court settlement. Resolution of claims from automobile accidents and worker’s compensation are settled through provision of structured annuities. Thus, professionals in the insurance industry as well as lawyers and judges acknowledge it as an effective measure in ensuring claimant’s security for future cash flow.

Structured annuities provide future financial security to the recipient through a steady source of income that can be used to pay expenses in maintaining the recipient and his family’s well-being. Since payments are structured periodically, it encourages responsible budgeting on the part of the recipient.

At times, a structured settlement can not met unexpected financial needs which require immediate cash flow. Facing an unexpected shortage of cash, the recipient has the option to sell structured settlement right to an annuity buyer. Structured annuities are assured cash income that investors in bonds and finance companies are willing to purchase.

The present cash value from the sale of structured annuities is higher compared to the value of cash that will be received from a periodic settlement. Overtime, the value of cash decreases due to inflation. The recipient can invest the total amount of cash from the proceeds of the sale to higher earning financial tools. This way you can provide for your heirs since some payments of structured annuities terminates upon the death of the recipient.

You should be cautious in selling your structured settlement rights. Beware of swindlers and fraudulent buyers. They usually offer unrealistic terms and rates against industry standard. Protect yourself through proper education on the process of selling structured settlement rights. Compare buyers’ rate and do a background check on buyers. To make it easier for you, hire a professional to help you sort it all out.


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