What’s The Difference Between a Structured Settlement And An Annuity?

The annuity and the structured settlement are two legal mechanisms used to pay out money to a person. There’s a big difference between the two, though. You need to be aware of the ins and outs of both of them if you’re going to be able to choose between the two.

There’s no doubt that structured settlements have been on the increase. This makes it even more critical that you find out about them now. By reading this guide you’re going to get an idea of the differences between the two.

What are Structured Settlements?

Structured settlements come with pros and cons but are pretty straightforward because they’re exactly what it says in the name. They come from lawsuits involving personal injury or liability, the majority of the time. They nearly always come as a result of a defendant settling out of court, rather than taking the issue to trial.

A structured settlement is exactly the same as a lump sum, except the amount is paid out in installments, rather than all at once. These are deferred payments and can be paid out in any way you see fit.

For example, you might agree to regular payments once a month. You might also agree to regular payments every year. It really depends on your needs and what the defendant wants to do. Both legal teams will discuss what’s best for the plaintiff’s quality of life.

What are Annuities?

The confusion between these two financial tools comes as a result of the way in which they can both pay out. 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. You’ll find that lottery winnings can be paid out in the form of an annuity to stop the winner from spending too much.

An annuity is a type of investment. It can be used to have better control over your money. It can also be used to make a good return on your investment. Annuities can be invested by your investment firm into various funds. This gives you the potential to take your savings fund and multiply it. It also gives you the chance to lose your money, though. That was demonstrated this past year in the UK when annuity yields dropped 8% after Brexit.

So What’s the Main Difference Between the Two?

The structured settlement is a legal tool used to deliver compensation to those who have suffered a personal injury of some kind, or someone who has admitted liability. This could be for something as simple as breaking a leg or something as serious as wrongful death.

The amounts for a structured settlement can vary from amounts as low as $100,000 all the way to multimillion-dollar settlements.

Structured settlements are also customizable according to your needs. You can receive payments as big or as small as you like. Annuities are relatively fixed in how often they pay out. Retirement annuities will only pay out after you reach a certain age.

You Can Sell Your Structured Settlement

There’s no reason why you have to hold a structured settlement after you’ve been issued it. You can easily sell the rights to someone in an exchange for a lump sum. Most of the time you’ll be selling it to a life insurance company or an investment firm. They will make you an offer and you’ll be able to receive a lump sum.

From that moment you’ll stop receiving any remaining payments on your structured settlement. Instead, the company you sold it to will receive the money.

Obviously, you wouldn’t receive the full amount of the structured settlement. There would be little point in anyone buying it if they paid you the full value of the settlement. You’re essentially paying for the convenience of releasing the structured settlement at a time you choose.

Is a Structured Settlement Always the Best Idea?

A structured settlement in court isn’t always the best idea. For smaller payouts it makes little sense to have the money paid out in installments purely because the payments would be so small it would be pointless. Once you start hitting six figures a structured settlement can be a great financial aid.

Last Word - The One Similarity

The only real similarity here is that they act as a stable income to fulfill your needs. Annuities and structured settlement can provide you with the peace of mind needed for you to live your life the way you want to.

Do you have any experience taking out a structured settlement after a civil suit?

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10 Toughest Interview Questions – and How to Answer Them

With competition for jobs fierce, many employers are in the enviable position of having numerous highly qualified candidates applying for just one or two open positions. And because these companies can afford to be selective, many are adopting new measures to screen applicants more carefully. One of the popular tactics is to incorporate difficult, unsettling questions into the standard job interview repertoire, in order to prompt "off the cuff" answers that may be more revealing of a job seeker's true capabilities.

These questions may help employers eliminate bad hires, but for job seekers they present a new kind of challenge: in order to make a strong sales pitch in an interview, candidates must not onlydemonstrate their work skills, but how fast they can think and how gracefully they perform under pressure as well. However, while the prospect of being asked these interview questions may be frightening, with a little practice applicants can turn them to their advantage and use them to stand out from the crowd.

They may be designed to catch job seekers off guard, but in fact the trick to fielding hardball interview questions is to prepare for them in advance. One of the typical mistakes made by smart people is to think they can just "wing it" because they're smart. The truth is that nothingbeats preparation. If you rehearse answering tricky career-related questions, you'll be more apt to respond to them confidently. Practice in front of the mirror, with friends and family, or use a webcam to record yourself to fine-tune your responses, facial expressions and mannerisms.

Ready to get started? Here are 10 classic tough interview questions you should be ready to answer, along with strategies on how to respond to them in a way that makes you stand out:

Most interviewers use this question not only to gather information, but also to assess your poise, style of delivery and communication ability. Don't launch into a mini-speech about your childhood, schooling, hobbies, early career and personal likes and dislikes. Instead, briefly cite recent personal and professional work experiences that relate to the position you're seeking and that support your credentials. Better yet, prepare a personal branding statement that quickly describes who you are and what you can bring to the company.

The economy has pushed many talented professionals into the workforce, so don't be ashamed to simply explain that you were a part of a downsizing. If you were fired for performance issues, it's best to merely say you "parted ways" and refocus the discussion on how your skill set matches the current position. If you currently have a job, focus on why you're seeking greater opportunity, challenges or responsibility. If you're transitioning to a new industry, discuss why you're making the transition and tie it into the new job responsibilities (make sure that you have very strong references regardless of why you left, or are leaving, a position).

Briefly summarize your work experience and your strongest qualities and achievements that are directly related to the responsibilities of the job you are applying for. One proven approach is to include four specific skills that employers value highly: self-motivation, initiative, the ability to work in a team and a willingness to work long hours.

Realize that most interviewers don't expect you to be perfect or reveal your true weaknesses. Turn this question around and present a personal weakness as a professional strength. Let's assume that you're detail-oriented, a workaholic and that you neglect friends and family when working on important projects. You can turn these weaknesses around by saying that you're very meticulous and remain involved in projects until you've ironed out all the problems, even if it means working after hours or on the weekend.

Another tactic is to discuss an area where you're seeking improvement, and then highlight the steps you're taking to meet that goal. Perhaps you're an accountant, and are working to improve your knowledge of payroll procedures by taking courses at a local college, or maybe you're an IT professional earning additional certifications.

Do your homework. Check out the company website and their "About Us" section. Most public companies post Investor Information which typically lists their Management Team, Board of Directors and past financial performance. Write down a few key points that you can cite when asked. Interviewers want to know that you're interested in more than just a job.

Concentrate your answer on areas that are relevant to the position and be specific. Don't say, "I liked the atmosphere." Instead, try saying "I enjoyed the camaraderie of being part of a team." When discussing least-liked aspects of your present or previous job, try to mention an area of responsibility that's far removed from the functions of the job you're seeking. But be sure your answer indicates that you either performed the assignment well or that you learned something useful. This shows that you stick with tasks, even ones that don't particularly interest you.

Hardly anyone expects you to say "yes" to this question in today's job market. If you do, the interviewer may think you'll grow dissatisfied and leave the company quickly. Instead focus on the experience and skill set you'll bring to the position and the value they'll receive by hiring you.

The interviewer who asks you this is really probing your readiness for the job, your ability to handle it, your willingness to work hard and your fitness for the job. Show your readiness by describing how your experience, career progression, qualities and achievements make you an asset. Keep it professional, and focus on the value you'll bring to the position. Highlight your ability by discussing your specific skills and accomplishments, but don't forget to show your interest in the job itself.

This question is often asked of recent college graduates, and the worst answer is to say that you want to be president of the company or have the interviewer's position. Instead, talk about what motivates you especially what will motivate you on this job and what you hope to have accomplished.

Don't say "no," or that everything has been thoroughly discussed. If you think the interviewer has any doubts, now's the time to restate why you're the most logical candidate for the opening. Show your interest in the company by preparing some key questions in advance. Asking about corporate culture or what the interviewer likes the best about the company will give you insight and let the interviewers know that you're interviewing them as well.

1. Could you tell me a little about yourself?
2. Why did you leave your previous employer, or why are you leaving your present job?
3. What are your greatest strengths?
4. What are your weaknesses?
5. What can you tell me about our company and/or industry?
6. What do/did you like most and least about your present/most recent job?
7. Aren't you overqualified for this position?
8. What sets you apart from other applicants?
9. Where do you hope to be in three years?
10. Do you have any questions? Can you think of anything else you'd like to add?

Having a positive attitude and practicing in advance can help you to field these challenging questions with ease, and that calmness under fire will demonstrate that you can handle crises on the job just as easily. Remember, interviewers are looking for a competent, confident candidate who not onlywants the job, but also understands its requirements and can quickly hit the ground running. Answering these challenging questions with poise and conviction helps you outshine other applicants, and puts you in a good position to land the job you want.

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