Structured Settlement Investments

Structured settlement investments are a terrific way to earn above average returns with below average risk. The investor is buying a future cash flow at a discounted present day value. The credit ratings of the underlying insurance company is most often A or better. Furthermore, the underlying annuity stream is insured up to $250,000. How many guaranteed returns of 5%-6% come with a free insurance policy of up to $250,000.

Structured settlement investments can be a great fit for an investment portfolio. While it’s never going to produce a double-digit annualized return, it also is the closest thing one can find to a risk free return. If an investor wants to generate safe consistent returns then structured settlement investments are definitely the way to go.

In order to make structured settlement investments, it’s best to hire an attorney to review documents, as they can pile up. Structured settlement investments are done through a court order. The insurance company is ordered to assign the payments from the annuitant over to the new investor.

There are types of structured settlement investments that are not allowed. One of those is worker’s compensation. Insurance companies feel it’s best to leave the annuity stream with the injured party in this case. They will fight a court order to assign payments to an investor.

Pensions are another type of annuity in which one cannot make structured settlement investments. Companies will not allow the assignation of pension payments from a former employee to an outside investor.

However, there are personal annuities that can accommodate structured settlement investments. Single premium annuities are usually assignable and they don’t require court ordered assignment. Structured settlement investments in single premium annuities are great because they just require a change of owner, change of beneficiary form. It is very easy to and much quicker than having to go through a court ordered process.