Settlement Annuity

Structured settlements are funded by annuities. These single premium annuities are purchased to provide a predetermined cash payment stream to the payee. These annuities have similarities to investment annuities in that they are typically backed by an insurance company and provide for a long term payment stream.

In order to sell an annuity settlement, often you must receive judicial approval. If you are the recipient of an income stream you must determine whether the asset for the cash flow is an investment annuity or a structured settlement annuity.

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