There are several kinds of annuity plans that a company may offer. The people like to choose the better ones. These annuities are won, or bought or sold. If won may be not taxable, especially if it is an injury case; if used as an investment then these will be taxable. Some are future income some are awards and some are the payments that you might be making. Here are the 2 types of annuity settlements that you may learn about to be interesting.
1) An Annuity Purchased to Provide Future Income
As the name tells you, these are the annuity payments that you will be buying from some company. These are a source of your income. These annuities are in a way better options as these might be sold in the future. One has the option to do so. Life happens and no one knows what’s ahead. You may need some large sum of money at a point, so when you do you will be able to sell these purchased annuity payments. A structured settlement buyer purchases these future payments from you and offers you a lump sum in exchange. This money that you get will help you with the current financial need.
2) A Structured Settlement from a Lawsuit
These are the most famous ones. The structured settlement that is a result of a settlement or an injury lawsuit or any other lawsuit can end up in getting you some annuity payments. The payments will be made according to a proper schedule. There is an agreement signed by the courts consent. These are the most common kinds of annuities. Every day we see lots and lots of people getting into some property settlement, divorce settlement, accident settlement and many others all which end up in a structured settlement payments.