Structured Annuities, Inc.Side-by-side Comparison |
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| Issue/Concern | Structured Settlement | US Treasury Securities |
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| 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. | A debt instrument issued by the US government and sold as securities to investors. |
| 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. | Yes. Available with a wide range of maturities, Treasuries offer predictable income and repayment of principle in full if held to maturity. |
| Is there a guarantee with this option? | Yes. The annuity issuer guarantees payments, as provided by the terms of the structured settlement agreement. | Considered among the safest of all investments because payment of interest and principal at maturity is guaranteed by the full faith and credit of the US Government. |
| What are the costs and fees associated with this option? | No cost to the annuitant. | T-bills are issued at a discount from face value. Treasury issues may be purchased directly (the primary market) or via outstanding issues sold prior to maturity by other investors through a broker (the secondary market). If purchased via the secondary market, brokerage fees will apply. |
| Will this option keep pace with inflation? | Yes, with a Cost-of-Living-Adjustment (COLA) feature. | Does not provide a hedge against inflation. |
| 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. | Subject to Federal taxes, but exempt from state and local taxes. |
| Is this option affected by market fluctuations? | No. Benefit payments are determined and fixed at the time the annuity contract is issued. | If Treasuries are held to maturity, investors receive the full face value — regardless of market conditions. If sold prior to maturity, value is subject to market conditions. Investors may receive more or less than they paid, resulting in a potential capital gain or loss. |
| 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. | An active secondary market provides liquidity. There may be a gain or loss if bond is sold or redeemed prior to maturity. |
| 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. | ||