Structured Annuities, Inc.Side-by-side Comparison |
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| Issue/Concern | Structured Settlement | equity Mutual Fund |
|---|---|---|
| What types of securities/ insurance products support the payments? | A fixed annuity contract issued by a life insurance company. Assets are invested in the insurance company’s general account. | An investment company operates the fund, pooling the assets of many investors and investing in equity securities. |
| Can this option provide a stable, lifetime income? | Yes. Payments and distribution schedule are determined up front. Can provide a dependable, predictable income stream that you cannot outlive. | Historically, equities have shown the greatest potential for long-term growth. But they also entail a higher degree of investment risk, which means they may not be a reliable source for ongoing income needs. Earning may stop altogether if fund performs poorly. |
| Is there a guarantee with this option? | Yes. The annuity issuer guarantees payments, as provided by the terms of the structured settlement agreement. | No. Share prices and returns will fluctuate with investment performance. |
| What are the costs and fees associated with this option? | No cost to the annuitant. | Management and expense fees cover the costs of managing the fund and are deducted from returns. Fund may also charge a front- or back-end “load” (i.e., sales charge), redemption fees (paid by investors when they “redeem,” or sell shares) and 12b-1 charges. |
| Will this option keep pace with inflation? | Yes, with a Cost-of-Living-Adjustment (COLA) feature. | Designed for long-term growth. Historically, a good choice for keeping up with inflation. Total return will depend on the performance of underlying securities. Past performance is not a indicator of future results. |
| What are the tax consequences? | Income provided by the fixed annuity is TAX-FREE, provided the damages received as periodic income (other than punitive damages) are the result of personal physical injuries or physical illness | Taxes must be paid as income is earned and distributed. Capital gains or losses from sales of mutual fund shares have additional tax consequences. |
| Is this option affected by market fluctuations? | No. Benefit payments are determined and fixed at the time the annuity contract is issued. | Fund yield, share price and return will vary, depending on market conditions. You may have a gain or a loss, depending on when you sell your shares. |
| Can I make changes to this option after I select it? | No. Payment amount and schedule are fixed and may not be changed or accelerated. | Money can be withdrawn or moved form one mutual fund to another. Charges, fees and taxes may apply to each transaction. |
| Information provided by Hartford Life *Important Note: Neither Hartford Life nor its agents give legal or tax advice. Since tax laws are subject to change, the brief discussion of options here cannot be considered complete or necessarily up to date. Please consult your own attorney or tax advisor for more details. 6/11/99 |
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Structured Annuities, Inc. Website: www.saidot.com |
4330 West Vickery Blvd. Fort Worth, TX 76107 |
| Consult your attorney and/or accountant. We do not give tax or legal advice. | ||