Annuity Settlement and the structured settlement are two legal mechanisms used to pay out money to a person. There’s a big difference between the two. In our previous post, we talked about ‘What is Structured Settlement. Structured Settlements Ins & Out‘.
By reading this guide you’re going to get an idea of what Annuity really stands for.
An annuity is a type of investment. It can be used to have better control over your money. It can also be used to make a good return on your investment. Annuities can be invested by your investment firm in various funds. This gives you the potential to take your savings fund and multiply it. It also gives you the chance to lose your money, though. That was demonstrated this past year in the UK when annuity yields dropped 8% after Brexit.
Annuities are relatively fixed in how often they pay out. Retirement annuities will only pay out after you reach a certain age.
Annuities are bought and they come from investment firms and insurance companies. You’ll find that lottery winnings can be paid out in the form of an annuity to stop the winner from spending too much.
Annuities settlement can provide you with the peace of mind needed for you to live your life the way you want to.
Annuity Settlement Option
Estate planning exibility and control
The Empire Life Annuity Settlement Option provides clients with greater exibility in distributing their death bene ts to meet each bene ciary’s needs.
Most settlement options only o er a lump-sum or annuity payout. This ‘one or the other’ approach may not meet the needs of your clients who demand greater flexibility and control. Our Annuity Settlement Option lets clients choose a combination of lump sum and annuity payments for each bene ciary.
- Customize with a combination of lump sum and annuity payments
- Add to any in-force or new Empire Life contract
- Available with registered and non-registered contracts
- Accommodates multiple bene ciaries and their unique needs
- Can be easily changed or revoked at any time
- No costs to the estate or the bene ciaries.
Their Annuity Settlement Option may suit clients who:
- Worry their bene ciaries may not cope well with a large wealth transfer
- Have dependent bene ciaries that require lifetime income for ongoing care
- Want to distribute their assets in a gradual and discreet manner outside their will.
For common question and answers, refer to this article Empire Live Annuity questions and answers.