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Annuity Payment

Annuity payment refers to monetary compensation which is paid out over a specified period of time. Often referred to as 'structured' payments, annuities generally stem from insurance settlements or jackpot lottery winnings. Individuals entitled to annuity payments are known as the 'Annuitant'.

When an annuity payment is provided through an insurance company, they are referred to as structured settlements. This type of transaction occurs when the Annuitant is compensated for injury or illness which was caused by the negligence of another. Structured settlement annuity payments are tax-free.

Structured settlements are generally used when Annuitant's require long-term medical care. The compensation is provided at intervals to assist with medical expenses, prescription medications, physical therapy, home nursing or rehabilitation services.

Insurance companies provide the injured party with installment payments which can extend for several months, years or even a lifetime. Annuity payments are guaranteed by the insurance provider.

Structured settlement annuity payment plans are regulated by state and federal laws under the Structured Settlement Protection Act. At present, 36 of the 50 states within the U.S. adhere to the guidelines.

Annuity payments are a safe and practical solution for individuals who require long-term care. In the case of lottery winnings, annuity payments are a preferred choice for individuals who prefer to receive annual lump sum cash payments over a long period of time.

Careful consideration should be taken when constructing structured settlements. Once contracts are signed the agreement cannot be altered. If Annuitants require additional funds from the structured settlement they cannot request early distribution, withdraw funds from the account or use the annuity payments as collateral toward obtaining a secured loan.

The only option available to Annuitants is to sell their structured settlement in whole or part to a private investor. Investors can purchase all or part of the structured settlement and provide the Annuitant with a lump sum cash payment.

When Annuitants sell a portion of annuity payments they retain control of the structured settlement. For example, if the Annuitant receives $50,000 per year for 20 years and requires $100,000 in cash, he could sell two years of annuity payments to an investor.

Annuity payments are assigned to the investor until the borrowed amount is paid in full. Once the loan is repaid, assignment of annuity payments reverts to the Annuitant.

Not all states allow Annuitants to sell annuity payments. Therefore, it is crucial to conduct research and fully understand the rules and regulations of your state. When selling annuity payments it is imperative to work with a reputable investor or investment firm that is well-versed in structured settlement law.

Simon Volkov is a distinguished leader in structured settlement annuity payment strategies in the state of California. He has helped numerous individuals obtain cash for annuity payments so they can have the money they need for healthcare expenses, investment opportunities, college tuition or to purchase real estate.

If you are in need of cash for annuity payments, we invite you to provide information using our Structured Settlements form. Upon receipt of information, Simon will contact you to further discuss your needs and available options.


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Published on August 10, 2009 at 02:03 AM

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