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Structured Settlement Learning Center
Structured settlement annuities provide injured clients with guaranteed, tax-exempt future payments. Before the settlement papers are signed, the client designs the stream of future payments and this becomes part of the settlement between the parties. The defendant then assigns its obligation to make the future payments to a life insurance company acceptable to the plaintiff. The defendant satisfies its obligation to the injured client by sending the premium for the annuity directly to the annuity issuer. The payment structure is extremely flexible in design, and can be designed to fund future goals (i.e. college or retirement) or can be used to provide lifelong income. Seriously injured clients seeking a lifetime payment may benefit from a "rated age," which serves to increase the payout per premium dollar. For many clients, structured settlement annuities provide much needed dissipation protection, guaranteed income and financial stability.

Annuity payments are guaranteed by the life insurers and thus are only as solid as the company backing them. Most annuity companies in the structured settlement market are rated A+ or better with AM Best. Also, while these annuities are flexible in design, they are unchangeable once established.