What is an Annuity?

What is an Annuity?

Structured Settlement Annuity.

An annuity is an insurance contract issued by a life company that provides periodic payments either for a certain period of time or a lifetime. Because the life insurance company has the opportunity to invest this large sum for a period of time they are able to build a rate of return (interest) into the annuity payments which translates into a higher payout.

Here's a great resource. Forbes Explains Annuities in Plain English.

It may not seem this way, but fixed annuities are actually simple and easy to understand. And they can play an important role in an individual’s financial planning, especially when it comes to retirement. What makes fixed annuities appear complicated and confusing is that insurance companies have mucked them up by adding all types of byzantine indexes, options and riders.

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Payment options

Temporary Life

Payments for a certain number of years, only if living; Payments are not payable for life, and they are not guaranteed

Period Certain Annuity

Payments for a specific period of time. All payments are guaranteed

Life Annuity

Payments over the plaintiff's lifetime

Life With a Period Certain

Payments over the plaintiff's lifetime which include a minimum number of guaranteed payments

Deferred Lump Sum(s) Annuity

Guaranteed or life contingent lump sum payments in the future

Cost of Living Adjustment

Payments increase annually based on a certain percent

The Valdez Team works with clients primarily in San Diego, Los Angeles and Las Vegas - with additional clients around the nation. Our team focuses on Settlement Planning & producing Structured Settlements for personal injury, medical malpractice, elder abuse, workers' compensation, product liability, mass torts, and construction defect cases. In addition, we also have the ability to create Structured Settlements for non-physical injury cases and attorney fees.

For more information on Structured Settlements contact us for a free consultation.

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