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August 28, 2007

Annuity Payments. What are They?

Annuity payments are generated from an insurance settlement and provide a consistent cash flow of income upon retirement. These structured settlement payments are typically paid either for a specific period of time such as 10 or 20 years, or for the lifetime of the Annuitant.

Annuity payments are subject to income tax regardless of whether they are received monthly or in one lump sum. Additionally, these disbursements might be subject to fees and expenses including mortality and surrender charges, and management fees.

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