Structured Settlement Annuities

Structured Settlement Annuities in Your Area

Understanding Structured Settlements

A structured settlement annuity (“structured settlement”) allows a claimant to receive all or a portion of a personal injury, wrongful death, or workers’ compensation settlement in a series of income tax-free periodic payments.

Structured settlements may also be used in non-physical injury settlements so that our clients may receive tax-deferred income instead of receiving an immediate and fully taxable lump sum settlement payment.

A Sage settlement consultant can advise you of your different structured settlement annuity options, which include:

  • Fixed-Indexed Annuities
  • Single Premium Immediate Annuities
  • Deferred Income Annuities
  • Multiple-Year Guarantee Agreements.

How Structured Settlements Function

The decision to utilize a structured settlement must be made before finalizing the settlement agreement. Once both parties have agreed to the details of the structured settlement, the claimant releases the defendant (or insurer) from liability.

The defendant or insurer then pays the structured settlement payout funds to a third-party assignment company, which assumes liability and purchases an annuity from a structured settlement carrier. The carrier then makes a series of periodic payments based on a previously agreed upon timeline and amount. For more information about structured settlement annuities, contact us today.

structured settlement process example

Structured settlement funding can be made with proceeds from settlements of almost any size; in fact, many structured settlement providers will structure amounts as low as $10,000. The choice is ultimately the claimant’s, and many find that a structured settlement is much more beneficial than a lump sum cash payment.

Key Advantages of Structured Settlements

  • 100% income-tax-free for physical injury and wrongful death cases: Payments (including growth) for physical injury and wrongful death cases are free from state and federal income tax under Section 104(a) of the Internal Revenue Code.
  • 100% income tax-deferred for non-physical injury cases: Payments (including growth) for non-physical injury cases are tax-deferred.
  • Guaranteed payments1: The parties agree to the payment schedule at the beginning of the transaction. That results in a steady source of safe, reliable income for the claimant.
  • Guaranteed rate of return: Structured settlement payments have a locked-in rate of return. That protects injured claimants against market volatility.
  • No overhead fees or expenses: Structured settlement have no overhead fees and preferential tax treatment. That allows them to remain competitive with traditional investments.

Explore Market-Based Structured Settlements

There are more investment options for claimants aside from structured settlement annuity. To learn more, visit our Market-Based Structured Settlements page.

Watch our video to learn more about diversifying your settlement funds.

For more information about structured settlement annuities, contact us today.

1Guarantees are subject to the claims-paying abilities of the issuing insurance company.

Further Reading on Structured Settlements:

See What clients Are Saying

    “I highly recommend Lance and will use him again on other structured settlements.”

    I worked with Lance Harris for the first time in 2013. Lance and his assistant were fantastic. They made the [structured settlement] process very easy and provided me with all of the documentation I needed to get the petition for the minor's comp

    - Marcus J. Bradley, Marlin & Saltzman
    “Simply said, I put my faith in Scott to do what is right for my clients.”

    I have worked with Scott Freeman since the days my firm opened the doors over a decade ago. I trust Scott to ensure my clients' needs are always met both now and into the future. The most impressive thing with Scott is that he finds a way to keep in tou

    - Kurt Arnold, Partner & Co-Founder, Arnold & Itkin LLP
    “Jennifer, you certainly have made your case that it is vital for me to have you at mediation to get the numbers that are best for my client”

    You certainly have made your case that it is vital for me to have you at mediation to get the numbers that are best for my client. Thanks for all your hard work on this case.

    - Robert Molettiere, Moletteire & Torpy
    “Need the BEST? Look no further than Susan Gleason!”

    Need the BEST? Look no further than Susan Gleason! She helped our family with an annuity settlement in a tremendous way! Her style, commitment, and interpersonal skills go unmatched!
     

    - Paige W
    “With Mitch Kobil's help, I put together a financial plan that provided my three children with an ample amount of money to subsidize their entire college educations.”

    From my perspective, structuring a portion of my fee out of the settlement proceeds of the case we worked together on several years ago was the smartest move I ever made. With Mitch Kobil's help, I put together a financial plan that provided my three ch

    - Attorney Richard M. Kenny
    “They are ardent supporters of the plaintiff bar community, and we consider them an integral part of our team.”

    They are ardent supporters of the plaintiff bar community, and we consider them an integral part of our team.

    - Brian Panish, Panish, Shea & Boyle, LLP | Los Angeles, CA
    “I would highly recommend Christina to anybody in need of an experienced settlement planner.”

    Christina is a caring, hard-working, and knowledgeable professional. She is meticulous about the details to protect my clients' futures. I would highly recommend her to anybody in need of an experienced settlement planner.

    - Mitchell Proner, Proner & Proner | New York City, NY
    “I wouldn't utilize a structured settlement as part of any global settlement for my client without first consulting George.”

    Any time that I'm in need of a structured settlement proposal for one of my clients George Audi is my first call. George and his staff provide the needed information and settlement options in a prompt and professional manner. George is also a valuable s

    - Lawrence M. Kelly, Luxenberg Garbett Kelly & George | New Castle, PA

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