When you’re receiving structured settlements, there are some things you’ll hear that are true, and things that are just myths. Here are just a few of the different popular myths that you may hear about your lump sum or annuity settlements, and the real truth behind each one. Even if you aren’t trying to sell your structured settlements, you’ll be happy you knew the truth about what to expect.

Myth #1: Insurance companies will keep your money when you die – On the contrary, you’ll be paid your income annuity for as long as you live, or as long as you specify. You can pick an option that allows you a guaranteed return of premium, where you’re paid until your time of death, and then your beneficiaries receive anything that you’ll have left over, plus any applicable interest.

Myth #2: Annuities are hard to understand – Understanding your annuity is a daunting task for sum, but finding the right services that can make it easy for you will help to relieve your stress. You can find firms that will explain how you can have tax-deferred compounding for an easier tax return, and that can help you set up your annuities in a way tat offers you a retirement paycheck from your own income.

Myth #3: Income annuities won’t be able to keep up with inflation – Because your payments will be increasing in their rate of payout as you age, you’ll be able to keep up with the rising costs of inflation. This will ensure that your additional savings will be converted into guaranteed income, which you won’t lose due to differences in inflation rate and payout rate, even including your taxes.

Don’t let the myths scare you! Your structured settlement can be simple and easy, if you know what to believe, and what’s just a myth.