Feature Elect Settlement Gratis

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Instructions and Help about Feature Elect Settlement Gratis

Feature Elect Settlement: easy document editing

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Definition: Under a settlement option, the maturity amount entitled to a life insurance policyholder is paid in structured periodic installments (up to a certain stipulated period of time post maturity) instead of a 'lump-sum' payout. Such a payout needs to be intimated to the insurer in advance by the insured.
A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity. However, many legal settlements offer a lump-sum payment option, which provides a one-time sum of money.
Annuities are essentially insurance contracts. You pay a set amount of money today, or over time, in exchange for a lump-sum payment or stream of income in the future. The type of annuity and the details of the particular annuity can determine the payouts you'll receive.
How do annuities work? An annuity is a long-term investment that is issued by an insurance company designed to help protect you from the risk of outliving your income. Through annuitization, your purchase payments (what you contribute) are converted into periodic payments that can last for life.
An annuity will pay out annually, but so can a structured settlement. The difference is annuities are bought, and they come through investment firms and insurance companies. An annuity is a type of investment. It can be used to have better control over your money.
There are five major categories of annuities fixed annuities, variable annuities, fixed-indexed annuities, immediate annuities and deferred annuities. Which is best for you depends on several variables, including your risk orientation, income goals, and when you want to begin receiving annuity income.
The four most common alternative settlement approaches are: the interest option, under which the insurer holds the proceeds and pays interest to the beneficiary until such time as the beneficiary withdraws the principal. The fixed period option, under which the future value of the proceeds is calculated and paid in
Settlement Option. Under a settlement option, the maturity amount entitled to a life insurance policyholder is paid in structured periodic installments (up to a certain stipulated period of time post maturity) instead of a 'lump-sum' payout. Such a payout needs to be intimated to the insurer in advance by the insured.

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