Enjoy The Structured Annuity Settlement


Insurance has become an important part of the lives of many people. With wide range of policies available with different insurance companies, it really becomes difficult to find the right one that can meet the needs and requirement individually. Structured settlement is one form of financial or insurance agreement where the injured person can receive the financial benefit in the event of an injury.

A structured annuity settlement is a financial agreement or the insurance agreement whereby an applicant agrees to resolve a personal injury tort claim by receiving the periodic payments. Here, payment is not given in lump sum but is given on an agreed schedule periodically. Such kind of annuity settlements are usually used in product liability or injury cases.

A Structured Settlement Annuity, in short SSA provides period payment over a period of time. The payment received is fully tax free and is specially designed to meet the needs of injured party. there are several benefits the injured party as well as the defendant can enjoy through structured annuity settlement.

Benefits Of Structured Settlement Annuity For The Injured Party


Customized Design

The injured party receives the payment which is tax free. The payment for the injured party is specially designed to tailor the needs of the party’s particular financial needs over a defined period. The injured party receives the amount after every periodic interval as per the schedule fixed.

Satisfies Financial Needs

The injured party receives the payment periodically instead of a lump sum amount. Well, the payments are designed to help the claimant. The current and future financial needs of the injured party can easily be fulfilled with structured annuity settlement.

Maximization Of Benefits

The structured annuity settlement offer maximised financial benefits the injured party. A claimant can receive significantly more amount as compared to lump sum cash settlement. Sometimes the annuity payment continues for life, no matter how long a claimant may live.

Tax-Free Payments

The structured annuity payments offer periodic cash and the whole settlement is tax-free. As per the law the full amount of the structured settlement payments in respect of worker’s compensation and personal physical injury claims is income tax free.


Structured annuity settlement offers lifetime payment options with added security to those concerned with outliving their funds. The funds help the injured party or the claimant to avoid risks associated with other kind of investment.

Beneficiary Protection

In case of claimant’s premature death, the annuity can be settled so that a designated beneficiary can receive all future guaranteed payments.


The payments are designed to meet the needs of the injured party. The needs include income replacement, ongoing medical expenses and college funds for dependent children. The payments are designed to meet unique needs of the claimant. The payments are scheduled for any length of the time. In many cases the payments are scheduled for a claimant’s lifetime. The payment may be in equal instalments or may vary over the time.

Almost everything about the structured settlement can be negotiated. Such as:

  • The length of the structure
  • The periodic gaps between the payments (once a year, twice a year or monthly, etc.)
  • The amount of money in each payment
  • You can demand for lump sum payments at the end
  • You can ask for the payments to end if you die before the end of the structure
  • Or you can have the payments to continue to your heirs

Benefits For The Defendant

  • May reduce the costs
  • Leads to faster settlements
  • Avoids Jury trails
  • May allow for tax deduction