Simply put, an annuity is an agreement between you and your life insurance company that you will pay them periodically over the years and they will pay out the cash value of your annuity at a predetermined date. This most basic kind of annuity is made to benefit you while you’re still alive–most notably for your retirement. However, a structured settlement annuity is like an annuity with a twist: it pays out in the case you are in an accident.

A structured settlement annuity comes with several attractive perks including the fact that it is income tax-free. Also, you get to decide whether you want reimbursement in the form of equal installments, varied amount installments, or one large lump sum. All of these specifications should be detailed in your structured settlement annuity contract.

Before signing your annuity you should first consider your current monthly expenses, your present age, your retirement plans, and most importantly: how dangerous your occupation is. If it does pose some kind of danger then a structured settlement annuity could be right up your alley. Shop around today and learn more about what a structured settlement annuity has to offer you.

Related Articles:

• Cash For Structured Settlement: Tips For A Successful Transaction
• The Tax Advantage of a Structured Settlement Payment
• What Does an Annuitant Do?
• Understanding Annuity Terminology
• A Who's Who and What's What for your Annuity