Option 2: Structured Settlement
Congress created structured settlements due to the risks of single lump-sum payments (see Option 1). A structured settlement is a tax-free annuity only available to personal injury victims. An annuity is a contract between you and a life insurance company where you pay a specified premium with your settlement funds. In return, the life insurance company pays you a specified amount over time, or in a lump-sum payment or a combination of the two.
The major benefit of a structured settlement annuity is that even though the money is invested for you and earning interest, you do not pay any taxes on those earnings. If investing the settlement in other financial products, the earnings are taxable. Congress created this tax break to encourage personal injury victims to use structured settlements to protect their settlement funds. In addition, structured settlements, are harder to reach by creditor’s claims and judgments than other financial investments.
A structured settlement annuity can provide you with a reliable stream of income tailored to meet all of your future needs. It can last a lifetime thereby ensuring that you or your loved ones will not outlive the personal injury recovery. A structured settlement also provides you with simple fee-free financial management for your recovery.
Structured settlement annuity contracts are issued by large well-known life insurance companies. Accordingly, a structured settlement annuity is one of the lowest risk investments you can make with your settlement funds. The low risk is a result of government regulation of the life insurance companies and their excellent financial strength.
The main disadvantage of a structured settlement is that once created it cannot be altered. However, this also prevents the dissipation of the settlement proceeds.
Millennium Settlements
3500 Financial Plaza, 4th Floor
Tallahassee, Florida 32312
(800) 573-8853 | (850) 894-4265 | (850) 894-4269 (fax)
Welcome | About Us | Structured Settlements | Structured Attorney Fees | Non-Qualified Structures | Level 5 Consulting | Contact
© Copyright 2010 : Millennium Settlements : All rights reserved. Disclaimer | Site Map
Primary Geography: Tallahassee, Florida. Cities: Orlando, Fort Lauderdale, Boca Raton, Palm Beach, Lakeland, Coral Gables, Clearwater, Melbourne, Coral Springs, Fort Myers, Gainesville, Hialeah, Hollywood, Jacksonville, Miami Beach, Palm Bay, Pembroke Pines, Plantation, Pompano Beach, Port St. Lucie, St. Petersburg, Sunrise, Tallahassee, Tampa, and West Palm Beach. Counties: Miami-Dade, Broward, Palm Beach, Lee, Pinellas, St. Lucie, Hillsborough, Collier, Sarasota, Manatee, Orange, Seminole, Osceola, Pasco, and Monroe.
