by John Darer CLU ChFC MSSC CeFT RSP CLTC
I asked Microsoft's AI what was the difference between a structured settlement and an annuity and this was the result
"A structured settlement is a form of negotiated settlement of claims and lawsuits in which some portion of damages is paid in the form of periodic payments. It is not a financial product, but rather a method of payment1. On the other hand, an annuity is a financial product that provides a guaranteed stream of income over a specified period or for life1 2.
"While structured settlements are often funded by annuities, they are not the same thing. Annuities can be purchased by individuals, while structured settlements are awarded by courts to plaintiffs2. Additionally, annuity sales do not require court approval if you purchased or inherited the annuity, whereas structured settlement payments require court approval to sell2."
I hope this helps clarify the difference between the two", said Microsoft AI Bing.
Bing cited sources as follows : 1. 4structures.com, and 2. Annuity.org
Bing AI is unable to discern fact from fiction when it comes to the tractor beam of the " awarded a structured settlement" vortex.
Structured settlements are negotiated and are the result of a compromise.
Awards are not settlements
- A Grammy Award is not a settlement
- An Academy Award (Oscar) is not a settlement
- If the President pins the Medal of Honor on you it is not a settlement
- If you make Dean's list it's not a settlement