A structured settlement can help add certainty to a claimant’s financial situation by establishing payments that are guaranteed and not impacted by market fluctuations or downturns in the economy.

Lifetime payment options may provide additional security to those concerned with outliving their funds. A structured settlement helps claimants avoid risks associated with other types of investments that can lead to premature depletion of savings.

Internal Revenue Code Section 104(a)(1) and 104(a)(2) provides that the full amount of the structured settlement payments related to workers’ compensation and personal physical injury claims is income tax-free*.

Periodic payments are designed to meet a claimant’s specific needs. Payments may be scheduled for life or for a specific period. Payments may be immediate or deferred and may be made in equal installments or may vary over time. In the event of a claimant’s premature death, the annuity can be structured so that a designated beneficiary will receive all future guaranteed payments.

Structured settlement annuities can be designed to provide guaranteed income to meet a claimant’s specific needs. Payment stream options include:

Payments begin on a date selected by the claimant and continue at specified intervals for a guaranteed period of time.

Payments begin at the date selected and continue until death. The goal of a life only annuity is to maximize income during a person’s lifetime.

Income payments begin at the date selected and continue until death. In the event the annuitant dies within a guaranteed period, payments for the balance of that period are paid to a beneficiary.

Payments begin on the date selected and continue throughout the annuitant’s lifetime. Upon death of the annuitant, a selected percentage of the benefit is paid to the joint annuitant designated at time of purchase (if the joint annuitant is still living).

Guaranteed lump-sum payments are paid to the annuitant. May also be used to supplement regular annuity payment streams (e.g. an annuitant may receive a monthly payment with an additional lump sum paid at age 18 to help meet education or other expenses).