If you have been offered an annuity payment plan in a settlement case, you might wonder whether it is in your best benefit to accept it. To help you determine whether it is the option that would help you the most, you will want to read through all of the following benefits.
It Is Protected From Creditors
Many annuities are protected from creditors. This means that you can still get all of the money that you are entitled to without having to worry that any of it is going to be taken by credits because of medical, credit card, or personal loan debt. Even if these creditors take you to court over the money that you owe, they cannot force payment from your annuity contract.
It Does Not Have To Be Listed On FAFSA Application
If you have children who use student aid for their college education, you might be worried how your settlement agreement could make you ineligible for any assistance. The thing is though, with an annuity contract, it is exempt from being required to e listed on a FAFSA application for student aid tuition help. Therefore, you will not have to worry about having to spend all of the money that you are entitled to on a full priced college tuition.
Guaranteed Payment Of Money
Demanding a very large amount of money in one lump sum can be difficult to collect on, simply because not everyone has access to that in of money unless the obligated party is actually a millionaire or a very large corporation. Another thing to remember is that with the option of an annuity payment, you will have a guaranteed source of payment every year until the debt is paid off. In some cases, this might mean that you can have a guaranteed source of income every year for the rest of your life. This can make budgeting your money a lot easier. Even if you spend all of one of your annuity payments on a new car or towards the purchase of a home, you know that you will have another one the following year and all of the years after that.
With all of those points in mind, you should be able to decide whether an annuity payment plan is in your best interest. All you have to do ow is work out the details of the annuity contract with your attorney so you can begin receiving your money.