“Alessandro Previtero, an expert in behavioural finance and financial decision making, examined annuities versus lump-sum payments, widely considered the two most popular types of retirement plans. Over a six-year period from 2002 to 2008, he surveyed 100,000 retirees with defined-benefit pension plans.

He found that whether retirees chose lump-sum payments or annuities was tied to how well the stock market was performing.”

So it appears that if the markets have been down for the past 12 months, annuities became more of a first choice for retirees.  But, the reverse happens if the markets are up, then lump sum payments were preferred.

“People have a strong tendency to think that what has happened will continue to happen,” he says. “I call it myopic because people only look at very short-term trends.”

Of course, investing in an annuity people receive a guaranteed, regular income for life.  But, even if this sounds simple, there are many things to consider before buying an annuity.

For more relevant information on annuities and other financial topics, such as the article “When Stocks Stumble, Investors Turn To Annuities” at http://www.theglobeandmail.com/.

Author: Brian Sibet

What is structured settlement?

This is a term generally used in insurance settlement. Insurance settlements are normally one time settlements given to the affected party or the claimant. The structured Annuity settlement (also called a ‘Structured settlement’) can be called as an extension of the benefits over a longer period of time. In other words, the victim gets his or her structured settlement money in a fixed amount periodically instead of getting the money in one lump sum. Such periodical income would normally last till he fully recovers and is able to take up his normal work.

It is said that the concept of structured settlement was first practiced in Canada in 1970. Later several other countries resorted to this procedure. Considering the advantage of this form of payment of compensation to the accident victims, several countries passed laws to legalize the Structured Annuity Settlement. This type of structured settlement is also called as ‘periodic payment judgment’. The Annuity is decided depending on the nature of injury, time normally taken to fully recover, type of immobility of the victim, the status of the victim, etc.

Structured Annuity settlement Vs one time settlement

In one time settlement, the victim has to suit his budget to the compensation received. This is particularly difficult when the victim is immobilized for longer duration of time. The victim will have to manage the medical expenses, domestic expenses, etc. within the compensation received and there is likelihood of the funds depleting. Instead, under the Structured Annuity settlement, the victim gets the compensation for a longer duration. He is assured of some periodical income till he recovers. With this amount, the victim can maintain his family, pay children’s school fees, the expenses towards food, medical expenses, etc. As a result, the victim’s daily life is not affected. Now this type of settlement is becoming more and more popular.

How to claim structured Annuity settlement?

There are several financial agencies and attorneys who are specialized in such cases. They will guide the claimant about the procedure to be followed in claiming the amount. Of course, they will charge a small amount as their consultation fee.

Article Source: http://www.articlesbase.com/insurance-articles/structured-annuity-settlement-2521343.html

About the Author

Brian Sibet also writes about Retirement Planning and Annuities including Lump Sum Annuity and Sell Structured Insurance Settlement

Variable Annuities, Cash for Retirement?

Variable Annuities, According to the SEC

“A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

First, variable annuities let you receive periodic payments for the rest of your life (or the life of your spouse or any other person you designate). This feature offers protection against the possibility that, after you retire, you will outlive your assets.

Second, variable annuities have a death benefit. If you die before the insurer has started making payments to you, your beneficiary is guaranteed to receive a specified amount – typically at least the amount of your purchase payments. Your beneficiary will get a benefit from this feature if, at the time of your death, your account value is less than the guaranteed amount.

Third, variable annuities are tax-deferred. That means you pay no taxes on the income and investment gains from your annuity until you withdraw your money. You may also transfer your money from one investment option to another within a variable annuity without paying tax at the time of the transfer. When you take your money out of a variable annuity, however, you will be taxed on the earnings at ordinary income tax rates rather than lower capital gains rates. In general, the benefits of tax deferral will outweigh the costs of a variable annuity only if you hold it as a long-term investment to meet retirement and other long-range goals.”

To become knowledgeable about variable annuities, read this article in full at the US Securities and Exchange site.

The first one is Berkshire-Hathaway, they tend to be specialists in long durations and/or deferrals.
Next is USAA, familiar to people associated with the military. Another A++ company, in addition to Berkshire Hathaway.
United of Omaha, part of the Mutural of Omaha Group.
Hartford Life Insurance.

The new video, as of 5/12/2011, discusses your options.

You may think, when offered a structured settlement, that you don’t want this, you just want your money.
But there are benefits to a settlement like this.

Just what is a structured settlement?
Well, it is a customizable stream of payments and can be of different types, such as, annuities or treasury bonds.

It is important to shop around and get information from a professional.

You don’t want to over structure. One of the greatest strengths, is that you are locked into it, but that is also it’s greatest weakness as well.

Getting a structured settlement means that if you get X amount of dollars every month, you can count on that and under present tax laws, it will be tax free.

You can only get structured settlement quotes from licensed insurance agents who are appointed by annuity issuers or by a vendor who sell US Treasury Trusts. Check for licenses.