Although there are infinite payment options
from a structured settlement annuity, for purposes of
comparing them with investment alternatives, there are
two major types:
are annuities that make one or more defined future payments.
Such annuities might provide a limited number of lump
sum payments for example, four annual amounts
for college and two additional payments at ages 25 and
30. Alternatively, the annuity might provide a series
of monthly payments, such as 20 years of monthly payments.
is easy to compare the type of returns provided by certain
annuities to various investment alternatives by clicking
annuities add a powerful insurance feature by providing
payments for life. The security of lifetime (or life-long)
income is a valuable benefit. It is more difficult to
value precisely in comparison to investment alternatives
that cannot provide life-time benefits.