An annuity is a series of payments that are done at equal or regular intervals. Meanwhile, structured payments/settlements are payments that a person receives after winning a civil lawsuit. How are these payments different from lump sum payments?
Well, they’re paid in chunks, not in full. Second, they come with tax benefits and this way you get to save a lot of money-in comparison with lump sum payments. For instance, I decided to sell my structured settlement annuity to factoring companies in exchange for payments.
Guaranteed Payments
Structured payments are guaranteed. Unlike stocks and shares that fluctuate with the market, your structured payments will not take a dip and they certainly won’t rise. That’s why they’re called stable sources of income. Technically, they’re not an income but because this is easy to understand, calling them as such isn’t a problem.
Understanding Buyouts
Your structured annuity can be bought by a structured settlement company. You can sell your structured settlement annuity.
It’s recommended that you sell your structured payments to benefit from tax reliefs and a good source of income rather than doing it the normal way. For larger sums, structured settlement annuity can be arranged. Single payouts are easier to spend, compared to payments that are stretched over the course of a few years because they only come in portions.
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