Understanding a Structured Settlement Annuity

A structured settlement annuity is something that many people receive whenever they have been in an accident. Here are a few things to consider about structured settlement annuities and how they work.

Structured Settlement Annuity

The structured settlement annuity is a type of disability insurance that is paid whenever someone gets into an accident. With this type of annuity, you are going to be able to receive a fixed annuity payment for a specific period of time. Most of the time, you are going to get payments for the rest of your life if you are permanently disabled.


Whenever you receive payments from a structured settlement annuity, you are going to be able to keep the money without paying any taxes on it. Therefore, the effective money that you are receiving is going to be greater than if you earned the same amount of money from working a job.

Another benefit of purchasing a structured settlement annuity is that you will be able to protect yourself against accidents that could occur. Many people do not realize the likelihood that they will fall victim to an accident and become permanently disabled. By purchasing this type of product, you will be able to avoid worrying about this problem.

How does receiving a structured annuity settlement affect Social Security Disability benefits?

If you receive a structured annuity settlement and you are about to retire, you may be concerned about how this will impact your Social Security benefits. You will be glad to know that structured annuity settlements do not affect the amount of money that you can earn from Social Security. You will still be able to earn the maximum amount of Social Security payments that you are otherwise entitled to before receiving your structured annuity settlement. Other factors could negatively affect your Social Security benefits, but you do not need to worry about the settlement money having an impact.

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