Structured settlements and annuities are financial products and legal judgments that provide a guaranteed stream of income over a set period of time. They are often used in civil lawsuits, where a plaintiff sues a defendant seeking damages. Structured settlements and annuities offer several advantages, such as financial security, long-term taxation benefits, and the ability to pay for extraordinary expenses. There are 47 states with structured settlement protection laws, and Congress has provided an opportunity for injury victims to receive guaranteed periodic payments as part of their personal injury settlements.
American General insurers are market leaders in providing structured settlement annuities to victims of personal injury, physical injury, or physical illness.Structured settlements are a valuable asset that can be valued and sold in a competitive market. Payments cannot be affected by changes in the stock market, making them an attractive option for those looking for financial security. Structured settlements also offer long-term taxation benefits, as Congress adopted special tax rules to encourage their use. Additionally, some agreements are designed to provide an annual income, with additional amounts allowed to pay for extraordinary expenses, such as college tuition.If you're on the receiving end of a structured settlement or soon will be, it's important to understand how they work.
Your lawyer is likely to have helpful opinions and will negotiate the terms of the agreement on your behalf. As part of the negotiations, the defendant can offer a structured solution or request it from the plaintiff.Structured annuities emerged in 1983 after the Periodic Payment Settlement Act of 1982 was established. These have been around for more than a decade and are common in taxable cases, such as employment agreements. A Medicare structured reserve agreement (MSA) generally costs less than an unstructured MSA due to the amortization of future cash flow over the life expectancy of the claimant, rather than funding all payments due in the future in a single undiscounted sum today.In conclusion, structured settlements and annuities offer several advantages to those who receive them.
They provide financial security, long-term taxation benefits, and the ability to pay for extraordinary expenses. It's important to understand how they work before entering into an agreement.