Is it Wise to Invest Personal Injury Settlements in an Annuity?

These payments guarantee an income over the life of the contract, providing financial security for you and your family. Structured settlements are a compensation agreement made after an accident, in which the victim receives periodic payments in lieu of a one off lump sum. These payments guarantee an income over the life of the contract, providing financial security for you and your family. These annuities are easy to maintain and offer favorable financial returns as they are 100% tax free. Furthermore, it guarantees an ample return from the interest it will generate, which is usually better than the rate you would find at a bank, and there are no fees to pay. The payments are also flexible, and so there are numerous ways these payments can be planned to fit in with your lifestyle. There may be many benefits, but is this investment right for you?

What’s your financial background?

If you, like many others have found yourself in debt, receiving a one off payment from your insurance company will, hopefully, allow you to pay off the debt and start fresh. If you have financial obligations, such as paying college fees or medical bills for an on-going condition, a structured settlement is still worth considering. As mentioned before, the payment plan is made by you and can be weekly, monthly, bi-annually or annually, depending on your financial needs. For example, you can arrange for two payments a year to coincide with your children going to college, or every month to pay the bills. However, once the payment plan is agreed on it is non-changeable. So plan carefully. If you’re unsure on payment plans, or whether the payments would cover and address your needs; consult a financial adviser. They will be able to go over your options and suggest the best plan of action for you.

I don’t have any debt

Lucky you! Then it is worth considering your compensation as a potential investment and not simply as an opportunity to buy a new car or go on a shopping spree. An annuity could provide you, as an investor, with a number of benefits. One of the major reasons why most victims should consider an annuity is because few companies offer pension plans that will provide you will a fixed income during retirement. If you currently have the financial stability, why not invest your money and guarantee that you’ll have a secure pension too.

When choosing an annuity, discuss with your attorney the type of investment option as well as the type of return that will be best for you. Once your payments begin, you will receive a tax benefit. When you retire, you want to maintain your comfortable lifestyle and enjoy the free time you have earned. Investing your money now will not only guarantee this, but will give you the peace of mind that comes with financial security.

What about if I need to sell my annuity?

Unfortunately, medical treatments and unforeseen problems can occur which will require quick access to money. This can be solved by choosing to sell structured settlement. You would receive an instant lump sum of money which would allow you to pay off any bills or debt that could occur. Furthermore, if you only need a small amount of money, why not settle for a partial payment? This would give you the money you need and ensure that your financial security for the future remains intact.

By: Mark Long

Mark Long is a reputable and well-respected financial adviser who knows how to sell structured settlements payments and annuity. He has recently partnered with an online finance website and accept client who request him to advice on their questions like, how to sell my annuity payment and to provide advice for who have recently been injured.

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Article Tags: Sell structured settlements , Sell my annuity

Submitted On Sep 24, 2013. Viewed 696 times.

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