Skip to main content
No. of Recommendations: 0
Also, being able to offer structured settlements /annuities like this can help the insurance company turn a smaller amount of money into “more.” For example, I’ve used them with plaintiffs who’ve been paid for their actual damages but I’m settling for their punitive damages. Plaintiff didn’t really need the money right now, but just had twins and he was worried about sending them to college if he couldn’t work in the future. We set up a plan where the money was set aside and allowed to grow until he was going to need for tuition in 18 years. That can look like a lot more $$ than just $100k lump sum right now. And it’s safe, and you’re not paying taxes on the earnings.

I’ve done similar things when people were concerned about retirement. We did one for a lady who was going to have to go into a nursing home. She’d had a stroke after the accident. We called around, figured out the monthly price of the premium assisted living/ nursing home in her area and set it up so she’d have the payments made until she died and she’d never have to worry about it.

I probably wouldn’t buy an annuity, but if I ever got a big insurance settlement, I would do a structure with an annuity.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.