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Summary: A structures settlement annuity is usually the result of litigation in which one party receives a court-ordered financial award. Learn about structured settlement annuities with information from a registered financial consultant in this free financial planning video.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"Hello, I'm financial planner Patrick Munro talking to you today about structured settlement annuities. Structured settlement annuities are as a result of usually litigation that's happened between parties where a financial award has been given by one party to another as a result of a court action. Usually it's in the form of payments because the court has set it up so that based on the life span of the person that won the settlement, usually from a car accident or some form that caused bodily injury or pain and suffering. After legal fees are paid, whatever balance of the insurance companies settlement will go in to an annuity. The insurance company will then pay the party a payment over time. Sometimes this can be a lump sum payment; large chunk of money given to the individual. However, more often then not, it's in a monthly income stream designed to replace income that may have been lost as a result of the action, as a result of the ligation. This is called a structured settlement annuity and I'm financial planner Patrick Munro."
eHow Article: What Is Structured Settlement Annuity?