A Structured annuity removes from the injured party the burden and risk of investing and managing a large sum of money. A 1992 study by the Rutter Group showed that 90% of all single lump sum settlements are dissipated within 5 years. The annuity offers a predictable, steady source of income, and can reduce the possibility of exhausting all settlement funds while financial needs still exist. An annuity that pays for life (the only financial product that does) eliminates the worry of outliving one's income needs.
For further information and research on protecting what is commonly referred to as "sudden money" or afinancial windfall recovery, please review the brochure published by the National Endowment for Financial Education® titled "Financial Windfall - Financial Psychology and Life changing Events."
The National Endowment for Financial Education® (NEFE®) is a non-profit 501 (c) (3) foundation dedicated to helping all Americans acquire the information and gain the skills necessary to take control of their personal finances