by Structured Settlement Watchdog
A Milwaukee Wisconsin structured settlement consultant bullet points that "only annuities can pay out for a lifetime" in an online sales presentation about structured settlements.
Is this true or just "cheesehead whiz"?
What is a lifetime?
The duration of existence of a living being or thing Source: Merriam Webster OnLine
What is a structured annuity?
A contract or agreement providing for periodic payments. Types of structured settlement payments.
Since one does not know precisely when the end will come, it is very possible that a managed portfolio of investments will "payout" for a lifetime. For example if you are 56 years old and were to take a lump sum of $1,000,000 and you buy a 30 year United States Treasury Bond yielding 4.625%, you will receive approximately $46,000 for a period which exceeds your normal life expectancy. A United States Treasury Bond is backed by the full faith and credit of the United States government and is an alternative permissible qualified funding asset for structured settlements.
A structured settlement annuity may provide a contractual guarantee "to pay out for a lifetime", however long that is. Depending on the age of the annuitant actual lifetime may exceed the maximum term of available bonds. With medical improvements and healthier living people are living longer.