This page addresses some of the most frequently asked questions and aims to clarify the misconceptions surrounding structured settlement annuities.

  • Are the payments that I receive from a structured settlement annuity taxable?

    No, they are not. As a result of the Periodic Payment Settlement Act of 1984, all payments you receive from a structured settlement annuity are made to you income-tax free. The Act allows for tax free accrual of interest on the sum of money used to fund your periodic payments. As a result, you are likely to receive greater benefits than would be available had you chosen to invest in traditional, taxable investment vehicles.

  • Will my structured settlement annuity payouts vary based on fluctuations in the market?

    No, your structured settlement payment amounts are guaranteed! Since structured settlement annuities are an income tax-free, fixed product, they are not subject to the unpredictability of a volatile market.

    This is the reason that Paramount has assured thousands of clients of their financial future; your payment amounts are guaranteed, removing all guesswork and doubt about your future financial stability.

  • Am I limited to the type of structure payout plan that I can choose?

    No, structured settlement annuities offer the flexibility to meet the needs of every plaintiff. Through Paramount’s Pre-Settlement Planning service, our advisors work with plaintiffs to assess both their immediate and long-term financial needs.

    Plaintiffs often choose to structure their payments to meet the needs of future education expenses, either for themselves or their children; as a supplemental retirement plan; as monthly income, should they not be able to return to work following the settlement of their case; or to simply provide security against inflation or unforeseen circumstances.

  • Can my structured settlement annuity be accessed by creditors?

    As a result of the Periodic Payment Settlement Act of 1982, future payments received through a structured settlement annuity are beyond the reach of creditors.

    Additionally, if a plaintiff’s post settlement plan is properly planned, the payments that you receive from your structured settlement annuity may not disqualify you from financial aid for college or certain government benefits.

  • Can I assign a beneficiary to my annuity? How are they protected?

    Yes! All individuals that select the security of a structured settlement annuity are offered the ability to name a beneficiary to the plan(s) that they select.

    In the event of the premature death of the annuitant (plaintiff), the annuitant’s designated beneficiary will continue to receive the benefits of the future guaranteed structured settlement payments, income tax-free.

  • What are the costs to the plaintiff and my attorney to retain Paramount as our structured settlement broker?

    There is a simple answer here: There are no brokerage fees or expenses that plaintiffs incur when they select Paramount as their plaintiff-loyal structured settlement broker.

  • Do I need to structure all of the money I get from my settlement, or can I diversify with my settlement proceeds?

    Diversification is permitted, and Paramount’s advisors encourage it!
    At Paramount, we feel that sometimes, depending on your individual circumstances, it may be best to structure a portion of your proceeds, and keep a portion of the proceeds liquid, and available for necessary expenses.

    This sort of Hybrid Plan is best suited for those looking to purchase a home or an income property with the cash portion of the settlement proceeds while funding a structured settlement annuity with the remainder of the proceeds.

    We would be happy to sit down and discuss your options in a Pre-Settlement Planning session. Give us a call today at 888-674-0127, to schedule your personal consultation!

If you have a question of your own that was not addressed above, contact us to submit your inquiry!