Settlement Annuity Payment

Structured settlements are funded by annuities. These single premium annuities are purchased to provide a predetermined cash payment stream to the payee. These annuities are typically backed by an insurance company and provide for a long term payment stream, making it similar to investment annuities.

In order to sell an annuity settlement, you must often receive judicial approval. If you are the recipient of an income stream you must determine whether the asset for the cash flow is an investment annuity or a structured settlement annuity.