Annuity payments provide a series of payments over a specific period of time. These structured payments typically evolve from an insurance settlement or lottery winnings. The person who receives the payments is referred to as the Annuitant.
Annuity payments paid to the Annuitant through an insurance company are called Structured Settlements. Payments from a structured settlement are not subject to income tax as long as the money received is the result of a personal physical injury or illness.
Structured settlements are legally binding contracts used when a person is seriously injured. They are oftentimes used in cases of medical malpractice, workplace injuries, automobile accidents with serious injuries, or injuries caused by negligence.
Structured settlements are a popular choice because they create a win-win situation for all parties involved. The injured party is able to receive money on a regular basis to help pay ongoing medical expenses, prescriptions, rehabilitation services, etc. The defendant is able to pay installment payments over a period of time instead of having to pay a lump sum cash settlement. The annuity is guaranteed by the insurance company who issues it.
Structured settlements are regulated by both state and federal laws under the Structured Settlement Protection Acts, which are enforced in 36 of the 50 states in the U.S. In essence, they are perhaps one of the safest and most practical financial arrangement; particularly for individuals who are not prepared to handle large sums of money.
The drawback to structured settlements is once the documents are signed the agreement cannot be altered. This leaves some Annuitants feeling strapped and unable to obtain necessary funds to meet financial obligations or take advantage of investment opportunities.
The solution to this dilemma is to sell annuity payments to an investor such as Simon Volkov. Investors can purchase a portion of structured settlement payments or the entire account. When selling partial payments, the Annuitant retains control of the structured settlement. For instance, if an Annuitant receives $25,000 a year for 20 years and is in need of $50,000 cash, he can sell two years of payments to the investor.
Annuity payments are transferred to the investor until the amount is paid in full. Afterwards, the Annuitant would begin receiving regular payments.
Before selling annuity payments, it's important to conduct research and make certain you are working with a reputable individual or organization. It's also important to note that not all states allow the sale of structured settlements, so be certain to check your state's laws.
Simon Volkov is a distinguished leader in providing cash for annuity payments. If you are the recipient of annuity payments and in need of a lump sum of cash, we'd like to help. To learn more about selling annuity payments, fill out our secure Structured Settlements form. Upon receipt of your information, one of our qualified consultants will contact you to further discuss your financial needs.
Published on June 05, 2008 at 09:54 PM
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