Structured settlement annuities provide stability and peace of mind during tumultuous financial times. In this article, learn more about who can utilize structured settlement annuities and what some of the key advantages are.
Who can use structured settlement annuities?
Structured settlement annuities are available to claimants settling certain types of legal claims and their attorneys. Many individuals choose to take a portion of their settlements in a cash lump to pay for immediate needs. A structured settlement annuity then acts as a regular source of primary or supplementary income.
To learn more about how structured settlements work, click here.
What are the key advantages of structured settlement annuities?
One key advantage of structured settlement annuities is guaranteed1 payments. Payment streams are agreed upon in advance and are backed by highly rated insurance companies.
Another advantage is a competitive, locked-in rate of return. In contrast, the value of stock portfolios can vary significantly.
Additionally, structured settlements offer tax benefits. For personal injury, wrongful death, and workers’ compensation claimants, structured settlement payments are income tax-free. Structured settlements for non-personal physical injury claims and attorney fees are income tax deferred.
Read more about attorney fee deferral options in this article.
Finally, structured settlement annuities do not have overhead fees and expenses associated with traditional investment vehicles. This allows more of the settlement funds to stay in the claimant’s pocket, or likewise, more attorney fee income to stay with the plaintiff attorney.
Contact Us for Structured Settlement Annuities
For more information on building a financial security net with a structured settlement annuity, contact your Sage consultant today.
1 Guarantees are subject to the claims paying abilities of issuing insurance companies.