In simple words, a structured settlement annuity can be considered as a lump sum that would be paid in exchange for a periodic payment. When an individual requires a lump sum as a compensation for an accident or injury caused, annuities allow the sum to be put in as an investment instead, so that the same can be used in case of necessity. Structured settlement annuities can be offered in a wide selection and can be bought as required by the customer.
Annuities involving periodic monthly payments would be a good option when the monetary losses tend to pile up while waiting for the compensation to be offered. This is indeed very useful in case of workers compensation benefits since they would be able to cover the medical expenses for the injuries caused by the defendant. In some cases such compensation would also cover the day-to-day expenses in the household of the worker who might be receiving the treatment for the injuries caused while on the job.
Most people would prefer monthly payments to lump sum settlements as lump sum settlement might sometimes result in the person not being able to cover the cost of living effectively. Also, since there is an option of receiving the same amount periodically, they are chosen by most people compared to receiving a lump sum settlement .
An individual opting for a structured settlement annuity must shop around before committing to a company. This will enable the individual to get to know various options and offers being provided by a few companies and might help provide some valuable information allowing the person to make some wise decisions. Also, companies who employ experts specialized in structured settlement annuities might be able to provide an insight on all that involved in the process of obtaining an annuity .