Frequently Asked Questions Regarding Annuity Flexibility

Will a life threatening injury to the claimant have an impact on the annuity plan?

Yes, life threatening injuries may result in a substandard annuity rating. This means that the life annuity plans will be based on rates available for older ages than the claimant's real age. The life insurance company underwriters assume a rated age based on the physical condition of the claimant and the published rates for that age are the rates used in computing the cost of the annuity. Therefore, the annuity plan can either cost less or offer more benefits than if the claimant's real age was used.

Annuity policies can be used in many ways. Can you illustrate some of the uses?

Can a payee of a structured settlement annuity contract demand that the contract be terminated and the commuted value of the contract be paid to him or her as a lump sum?

Is it better to name a specific person as the beneficiary of the guaranteed benefits of the annuity or the estate of the annuitant?