by John Darer CLU ChFC MSSC CeFT RSP CLTC
Five Reasons Why to Take A Structured Settlement
- Structured settlements offer tax-free Income for damages paid as consideration for
personal physical injury, physical sickness, wrongful death or workerss compensation. - Security with minimal investment risk**. Backed by the full faith and credit of one or more (depending on your structured settlement) large insurance companies who must meet stringent statutory reserve guidelines in all admitted states.
- Automatic spendthrift protection in a structured settlement reduces the risk of dissipation of assets
- Mortality protection. If lifetime income is elected in your structured settlement, you effectively have insurance against outliving your structured settlement income payments.
- No stock brokers fees, no investment advisory fees, no special accounting or legal fees to create a structured settlement.
**generally a structured settlement is funded with a customized structured settlement annuity (or annuities) which is an insurance product and not a security. There are some structured settlement annuities which are considered securities and can only be offered by prospectus. This article is not referring to that type of structured settlement or structured settlement funded with obligations of the United States government (Treasury Funded Structured Settlement).
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