What's The Difference Between An Annuity and Structured Settlement

What do you need to know

annuity v structured settlement
Let’s say the bar includes an annuity and a structured settlement, how can you tell them apart?

Here are some points about the differences:

1. Structured settlement is a form of negotiated settlement of claims and lawsuits in which some of the loss is paid in recurring installments.
2. Structured Settlement is not a financial product. An annuity is a financial product. This is an important distinction.
3. Structured settlement can be funded by an annuity

(or annuities), however a structured settlement is not an annuity.

4. Regular annuities usually do not have a “follower”. A structured settlement annuity usually has a “follower” known as a qualified assignment company because such annuities are not available for retail purposes.
4. While annuities are the most common method of structured settlement financing, they are by no means the exclusive form of financing.
There are other financing options for structured settlement in addition to annuities, such as
Treasury-funded structured settlement, Market-based structured settlement, Recurring payments, reinsurance and financing agreements

What is structured settlement? and

Structured Settlement Annuities

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What's The Difference Between An Annuity and Structured Settlement

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