What are structured settlements and annuities?
I keep seeing a commercial for JG Wentworth, who allows you to get all your money at once if you have a structured settlement or annuity. First, what are these things, and how do they work? Second, how much do you get to keep if you use their services? Can you give some hypothetical examples of situations?
Annuities- something a person buys if they can’t handle their money when they are older.
They may drop 100K in cash into an annuity and the annuity pays them $300 a month for the rest of their life.
Cost can be as much as 15% in commission for the seller (huge profits for sellers).
And annuities can carry yearly costs of 5%.
A financially smart person will avoid annuities at all costs.
Structured settlement example.
Someone gets killed or hurt by neglicence of a company or another driver.
In the lawsuit they state that you will $10,000 a year for life.
With these settlement companies – they will give you the cash upfront.
A lump sum – with no further yearly payments.
A person can pay as much as 40% of their benefits to this settlement companies.
Again – a VERY, if not extremely profitable business to be in…
JG Wentworth Spanish Customer Testimonial – Maria M., Hazelton, PA
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