A structured settlement is a unique solution for people who are going through legal settlements. We understand you have questions and we are here to help. Below are some common questions regarding structured settlements.
Who can utilize a structured settlement?
Any person who is currently going through a legal settlement can request to receive part of their settlement as a "structured settlement"--in other words, as a stream of future periodic payments designed to meet the claimant's needs over a period of time.
Is a structured settlement annuity a regular annuity?
No. It is a commercial annuity product offered by several of the highest rated life insurance companies in the United States. The life insurance companies will only appoint licensed structured settlement consultants to quote and sell structured settlement annuities. In addition to a traditional annuity product, other options exist to fund the periodic payments such as U.S. Treasuries and a unique program called Settlement Plus.
My attorney received the settlement money. Is it too late for me to structure?
Unfortunately once you or your attorney receive the settlement proceeds, it is too late to purchase a structured settlement. In order to preserve the tax treatment of the future payments (either tax-free or tax-deferred based on your type of case), you have to elect to structure part of your settlements proceeds BEFORE any checks have been issued and before any documents have been signed.