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August 10, 2009

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.

Real Estate Investing article on "Annuity Payment"