Structured Annuity Settlement on the Rise

Photo of author

( – March, 12, 2013) Los Angeles, CA — According to, a site devoted to annuity settlements, structured annuity settlements are on the rise. The global economy is continually characterized by low interest rates. The unrelenting trend is keeping a tight lid on investment returns prospects especially for retirees. This frustration has led to the invention of “innovative” investment schemes in the financial landscape. As reports the structured annuity settlement is gaining more popularity as it has become one of the few investment strategies with high yields while keeping a low risk factor. Returns rates in this investment model range between 4% and 7%.

The information resources released outlines the important principle that unlike in high yield investment programs (HYIPs) which are in reality financial scams, returns in structured annuity settlement achieved in low-risk fixed lump some investments are not premised in the increased risk factor but are leveraged on poor liquidity. The foregoing means that structured annuity settlements have a potential of generating higher returns which are not necessarily tied to a risk premium but a liquidity premium.

Several economic reasons have led to the rise in structured annuity settlements. These include low interest rates and growing incertitude over various long term investment options offered by financial institutions. There is a lot of defaulting and divers irregularities committed by financial services providers in the financial industry. Most of the cases end up in the court of law hence there are so many scenarios where structured annuity settlements have come into play particularly when a court ruling goes in the favor of the plaintiff. A good example is when medical malpractice causes injury and the court determines a series of payments to be made towards the plaintiff over a period of time. point outs why it is important to look into the intricate factors and variables of a structured annuity settlement before plunging yourself into one.

The necessity of a structured annuity settlement normally comes into play from basically two angles. In light of a court ruling determining payment to be done towards the plaintiff the defendant may want to eliminate the financial risk of making the due payments over a long period of time by buying an annuity normally from a quality insurance entity. This will enable the defendant to pay off the money due to the plaintiff while positioning the defendant to pay off their part of the settlement with a once off lump sum payment.

If you are involved in a situation where a court has ruled in your favor and you are receiving due payments then you may want to consider the guidelines published by on how to get more liquidity. The information resource further outlines how structured annuity settlements present a good opportunity for a plaintiff to get complete cash settlement especially in situations where the plaintiff needs more liquidity above the rate of incoming structured installments. Just like getting into financial managements, coming out of financial arrangements can be a huge and precarious achievement that requires broad and well informed consideration. Information resources such as have useful tips and guidelines that will help you with an essential understanding of how structured annuity settlements work and how these can best work for you.