A LOOK AT STRUCTURED SETTLEMENT
Structured settlements are exactly what they sound like. These are generally the result of a lawsuit involving personal injury or liability, and represent an acknowledgment in favor of the plaintiff. The defendant has been found guilty or has accepted guilt in lieu of going to trial, and the award amount has been converted from a lump sum into a series of payments over time. They are called deferred payments.
A LOOK AT ANNUITIES
The difference between an annuity and a structured settlement is that annuities are generally the financial tools available through insurance or investment companies. Lottery prizes often fall into this category as well, if the person has opted for the annuity option rather than the cash sum. An annuity is an investment in which the investor makes a profit in addition to the original investment amount, and may have different beneficiaries. There are a wide range of types of annuities.
WHAT YOU NEED TO KNOW
As you can see, the difference between an annuity and a liquidation is very important when you really want to delve into the subject. How does this affect the owner of the annuity or structured settlement?
A large part of how you are affected will be determined by where you live and what state laws apply to the sale of your product. In most cases, states do not allow the sale of structured settlements, but annuities are sometimes a different matter. The law can be very complex when it comes to selling these types of financial tools, and you need an expert to help you navigate these murky waters.
Perhaps the best advice for anyone considering an annuity sale or structured settlement is to work with a trusted agent who understands the law. The broker must be an accredited member of the BBB, and must have a long history of offering robust solutions for clients and helping them get the best deal for their settlement or annuity.
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