Long Term Problems With Annuities
Posted by danaustema on November 16, 2008
Instead of a single lump sum payment, structured settlements pay awards in periodic payments for a set amount of time. If you are ready to unload those problematic periodic payments for a lump sum, you are probably trying to figure out how to go about selling your annuity income stream. When you reassign the rights to your payments, the issuing company will begin sending payments to the individual or organization that you reassign ownership of your structured settlement to. Structured settlement payments may be reassigned for a short period of time or continue for the remainder of the awardee’s life.
The company that facilitates the transfer of your structured settlement would generally be the recipients of your future payouts and you would be given a lump sum of cash in return. The settlement payments that are sent to them are no longer yours, because when you sell your structured settlement payments you are transferring the ownership of your future payments to a third-party buyer. Remember though, that long term payments from an annuity decrease in value over time as inflation increases.
