subject: Structured Settlements – Overview of annuities and how they work [print this page] Structured settlements are a financial arrangement is often used when an individual is awarded a large sum of money. This could come from profits to compensate jackpot prize money has seriously injured or draw. Structured settlements are often set in case of accidents or work motor vehicle accidents, medical malpractice and durable, the negligence of another.
There are different types of structureSettlements with individually tailored financial needs. Typically, these will be offered if the loss exceeds $ 10,000. In the case of a minor damage to more than $ 5,000. Pensions are paid on time to the recipient (reindeer) in a given period.
Depending on the circumstances and the amount of prize money, reindeer could receive payments over 10-20 years or for their entire life cycle. Much depends on the type and duration of Medical care is required as well as living expenses.
Structured settlements are also willing to compensate individuals who win lottery jackpots. For example, if someone wins $ 5,000,000, you can choose to pay a lump sum or take the money received for a period of years. The adoption of a lump sum they receive a lower amount if they choose to accept a structured settlement.
Similarly, Certificate of Deposits (CDs) issued by banks,> Structured settlements are supported by insurance companies, rather than an annuity. The pensions will be invested to expand the annuitant's financial portfolio. Upon retirement or negligence will be paid as a result of injury, are exempt. If you are paid to lottery winnings could be subject to taxation, both state and federal. In addition, investment earnings are subject to both state and federal taxes.
When structured settlements are paidfor a time, they are classified as "designated period" or "annuity certain period of time" means. The reindeer is given a certain sum of money in a given time for a number of years. If the reindeer die in full prior to settlement is structured to pay the balance to be paid to a designated beneficiary.
