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.
