Benefits Behind an Annuity or Structured Settlement
Structured settlement FAQ Structured Settlement and Annuity settlements are designed to provide a steady stream of income over a long period of time. If bad investments are made with a lump sum settlement, then they can vary in a few years of your life. One of the advantages of receiving a structured settlement over a lump sum settlement is that a steady stream of income is divided for you over an extended period over several years. A structured settlement is tax-free through the federal and state levels during its pay periods, but a lump sum of money invested is not tax-free. As stated before, some bad investments could mean that a lump sum settlement won't last a lifetime. A million dollars in an account seems like it could last forever, but after medical bills and living expenses this lump sum settlement can't last nearly as long as an annuity or structured settlement would. The second advantage of a structured settlement is the vulture factor. Many people take a