by John Darer® CLU ChFC CeFT MSSC RSP CLTC
And They Each Ordered a Beer. The question is how many beers does the bartender pour?
The solution to this strucured settlement definition quandry is no different than that for someone seeking a solution to incontinence. Depends
What is an Annuitant?
The individual named under an annuity contact who will serve as the measuring life for the purposes of determining the benefits to be paid under a structured settlement annuity contract
What is a Measuring Life?
The human being or natural person whose life expectancy is the basis for the cost of a structured settlement annuity that is payable for life.
What is a Payee?
The individual or entity to which payments are due to be made under the structured settlement annuity contract
What is a Beneficiary
The individual(s) or entity that is (are) due to receive a death benefit when the Measuring Life for a structured settlement annuity dies.
It's critical to note that in differing circumstances two or more of these could be the same individual or entity. The Bartender must pour a minimum of 2 beers because the annuitant, measuring life and payee could be one and the same. If that were the case they could not be the beneficiary.
Structured settlement brokers, settlement planners and their staffs, post-sale handlers at life insurers and lawyers, have a responsibility to see that these are reflected accurately in structured settlement documents such as the Settlement Agreement and Release, Qualified Assignment, Annuity Contract, Pledge Agreement) if Applicable and Guarantee.
For more structured settlement keywords, terms and definitions please see the structured settlement glossary at 4structures.com