Annuities are much cheaper than a lump sum. Why insurance companies like to buy them. However, what is in your best interest? Always a lump sum for a regular settlement or one including an MSA.If you want the money in a monthly installment, you could buy an annuity yourself and get a better deal. If you violate the terms of the MSA agreement (i.e. spend the money not on medicals), it is my understanding ( and the laws can ALWAYS change), that there is no criminal repercussions. What would happen is that you would have to repay the MSA account and use the money up before Medicare would pay for your future medical care.
Actually, you are completely wrong. An Annuity for 100K over your life expectancy might cost the IC about 70K. They pay an Annuity Company 70K, and the Annuity Company pays you 5K a year for 5-30 years.
We give free general concepts to be helpful, but you should give ALL your facts to a licensed Attorney in your state before you RELY upon any legal advice.
The annuity will always cost the Insurance company less than the required lump sum amount. Why do you think they like to use them? To save money, of course.
This answer is intended as general information and not as specific legal advice. If you want to have a free consultation with me, please contact me through AVVO.