Structured Settlements

A structured settlement is an agreement between parties, which results in an insurance entity committing to make payments to an individual for an agreed upon period of time or for the life of the individual. The original recipient is normally an individual awarded a legal settlement due to personal injury litigation.

These guaranteed payment schedules are obligations from only the highest rated insurance carriers, such as Met Life, John Hancock, New York Life and Mutual of Omaha.

The payments are tax free only for the original injured victim.

Sale of Structured Settlements

In some instances, the individual who is receiving periodic payments under a Structured Settlement desires to sell some or all of their future payments for a lump sum of money. The cash flows are sold at a discount in exchange for the lump sum payment, and this discounted Structured Settlement is available for sale to the purchaser.

Opportunity for New Purchaser

The structured settlement payments are attractive to a new buyer or assignee because the guaranteed yields are (a) significantly above all current available fixed annuity rates and (b) the payment obligations are guaranteed by only the very highest rated carriers. Please note that the payments are taxable to the new purchaser.

Typical transactions range from as low as $20,000 up to $1,000,000. Historically this product has only been available to institutions and hedge fund managers and sold by representatives from the major Wall Street banks. Annuity Pros, Inc., offers structured settlements on a limited basis.


Structured settlements and the professionals who design the payment streams for accident victims have a vital role in America's civil justice system, says 2011-12 American Bar Association president William T. Robinson. Mr. Robinson has worked with structured settlement professionals to resolve injury cases for nearly 30 years.