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 Posted: Mon Jul 21, 2008 11:25 pm Post subject: |
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I believe the lump sum settlement is tax free as well..personally I would check the rate of return, and if I thought I could do better that's what I would do...Find out if they are 'paying' the full policy limit for the annuity or if policy limits are what you would ultimately end up with...if the later is true then of course you should take the lump sum settlement..also there are different types of annuities check ALL the conditions.
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Lori
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| Posted: Tue Jul 22, 2008 4:07 am Post subject: Policy Limits and Annuity |
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Yes, the lump sum payment is tax free but any interest earned on it (say, I put it in a CD and earned interest) is taxable.
What do you mean the full policy limit for the annuity or the policy limits are what you would ultimately end up with??
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Sprite Again!
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| Posted: Tue Jul 22, 2008 6:19 am Post subject: |
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Hi Lori.. | Quote: | | if the later is true then of course you should take the lump sum settlement.. |
do you indicate the amount with the accrued interest?
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ParkerJ
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| Posted: Tue Jul 22, 2008 9:52 am Post subject: |
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| Quote: | | What do you mean the full policy limit for the annuity or the policy limits are what you would ultimately end up with?? |
Meaning when the annuity payments are totaled do they equal the policy limits? or are they more? If they are paying the policy limits for the annuity that's fine, but if they are paying say 80-90% of limits and she is getting the limits ULTIMATELY in the pay out...that is not fine.. | Quote: | | do you indicate the amount with the accrued interest? |
yes
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Lori
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| Posted: Tue Jul 22, 2008 9:02 pm Post subject: More |
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Well, it looks like they give you a settlement over 20 years (gauranteed); let us say, I live for 2 more years. They then pay my heirs for 18 years a monthly amount. But if I live until I am 90, then they pay until I am 90 (much longer than 20 years!).
Either way, it is more than the settlement amount (200K) because of course I could stick it in a bank and let the interest accrue (but it would be taxable at state and federal). Well, that's assuming our banking industry remains sound.
They are calling me back with some specific examples of how the settlement works. They can give me part right away so I can pay the surgeon and then the rest I will get over 20 years or basically for the rest of my life. I was fortunate to find the surgeon in the entire USA who SPECIALIZES in fixing my type of injury -- and so even though I had to wait over a month for an appointment, he can see me and I hope he will be able to fix me up. I have health ins but it never covers anything 100%, so the money from the settlement is very much appreciated and needed.
Sprite
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Sprite Again
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| Posted: Tue Jul 22, 2008 9:33 pm Post subject: |
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I'm soooooooo glad you are getting this all settled Sprite...good for you!
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Thu Sep 09, 2010 3:54 am Post subject: UwsSRXzi |
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EFUcoIt
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UwsSRXzi
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