The Benefits of Annuities in any Stage of Life, With Structured Settlement Consultant, Tory Owens

Every year, thousands of personal injury cases are settled around the United States. Whether it be from a car accident, a dog bite, or an incident on private property, these cases oftentimes result in a sum of money being paid to the victim. These settlements are tax-free and can be delivered in one fell swoop if the victim wishes.

The victim, however, may also have the option of a structured settlement. This is when the settlement money agreed upon is delivered in cash and scheduled, periodic payments determined between both parties of the case to begin at a certain time. These periodic payments are known as structured settlement annuities and can either begin immediately or at a later date.

Tory Owens is a structured settlement consultant, hired to see these settlements out. He has been working on providing annuities for his clients for years and knows just how beneficial these payment plans can be. There are a multitude of different reasons why annuities are the way to go, not only for your wellbeing but for the wellbeing of your family.

The first reason revolves around interest. Let’s say that you’ve gotten into an accident and were rewarded a 100,000 dollar settlement for your injuries, if you receive all of that money immediately and let it sit in the bank, all you are gaining is bank interest.

This will be a measly increase each month, roughly 0.01 percent to 0.05 percent, a fraction of the overall amount that will prove almost meaningless, even many years down the road. 10 years of time will perhaps see that boost by only a couple hundred dollars, and due to inflation over that time, you may stand to even lose money.

With an annuity set up, you have an opportunity to gain tax-free compounding interest on your payments. This could turn that 100,000 dollars into 125,000 dollars by the time that ten years is through! You are not even required to annuitize all your settlement; you may agree to be paid a portion of it, and annuitize the rest of it, so if you need some of that money immediately, that can be arranged with no issues.

Another large reason that annuities are better is to keep victims from overzealous spending. 70 percent of victims will exhaust the entirety of their settlement within three years, while 90 percent use all of it within five years regardless of the settlement amount. This often occurs because the victim tends to develop overzealous spending habits and becomes the “rich person” in their circle of friends and family after a large amount of money is awarded; when family and friends ask for favors, it is hard to deny. This is a rabbit hole that most of us fall into, and providing annuities can ensure that the money stays around for decades longer than it otherwise would.


There is one downside to annuities, and that is that the schedule agreed upon is locked in. Things change in peoples’ lives, and if money becomes tight later down the road, the annuity cannot change to meet new demands. This is why consultants like Tory Owens are fantastic people to meet with on the topic of structured settlements. With a consultant, you can go over all the risks that may be involved with structured settlement annuities and determine how to best go about receiving the money you are owed.

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