Types of Structured Settlements

There's more to structured settlements than what's obvious

It can be naive on your end to believe that there's little more to structured settlements than the fact that they are the financial structures that entail periodic payments to a claimant. On a deeper look, however, it can be realized that there are several types of structured settlements. Based on the requirements of the claimant, a structured settlement can take many forms. At My Structured Settlements Money, we tell you all that you need to know in order to get your annuities just in the way you want.

Income For Life Annuities

This is the most common form of structured settlement contract. This is a structure that endows the beneficiary with a fixed amount for his lifetime. The schedule of the payments can be worked upon by the two parties, with monthly payments being a common schedule. Also, there can be a 'certain period' or 'guarantee period' associated with the structured settlement, which means that the payments will be made for the beneficiary’s lifetime or the ‘guarantee period', whichever is longer.

Structured settlements that can cater to anticipated future requirements of the claimant

Deferred Lump Sum Payments - This structure entails payments that are to be made at pre-determined time horizons, so that the beneficiary is able to cater to anticipated needs such as college education, medical treatments, investments, retirement planning, etc.
Period Certain Annuities- These structured settlement payments are only made for a specific time period. Such payments are mostly useful for claimants who need to fund their college or graduation school fees, or aged claimants who need to plan for their retirement.

Getting your structured settlements tailor made

It is of prime importance that you consider the ups and downs of different structured settlement types before finalizing the contract. By knowing the different types of structured settlements, you can ensure that your current and future needs are effectively met. Depend on My Structured Settlements Money advisory services to help you out at all steps of a structured settlement, even if you choose to sell it later.

Structured settlement arrangements that are built to beat inflationary pressures

Step Annuities – This is a structure that brings in gradually increasing payments to the beneficiary with each subsequent settlement. This gradual increase can continue for the entire time horizon of the settlement amount, or can be tabbed to a certain level.
Percentage Increase Annuities - More or less similar to step annuities, these payments are supposed to increase by a certain percentage after a fixed time interval, with the intention of adjusting the incoming amount against inflation.

Enhanced Structured Income

Here's a structured settlement scheme that allows you to let a certain part of the settlement amount to be up for sale in secondary structured settlements market. One can expect to get attractive rates on the sellable part. Though gains from sale of such a settlement are taxable, but the returns are sufficient to offset the taxes in most cases. Call us for more information on how you can go about selling your structured settlements

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