Is a Structured Settlement an Annuity?

John Darer • January 13, 2019

A Structured Settlement is Not An Annuity | What's With The Confusion?

A structured settlement is an annuity?

A structured settlement is not an annuity. A structured settlement is a way of settling a lawsuit using a combination of cash and customized stream (or streams) or future periodic payments. An annuity is one of the types of qualified funding assets for a structured settlement. Structured settlements can also be funded using obligations of the United States government. Future periodic payment obligations for many types of settlements where the paying party to the claim or litigation is insured may also be funded using reinsurance agreements (a/k/a "reinsurance structured settlements"). There are also other market based methods of funding future payment obligations for settlements that can be used for funding both qualified and non qualified structured settlements.

The structured settlement secondary market is notorious for providing misinformation about structured settlements to consumers. It's unreliable. The misinformation is mostly borne of the ignorance of the staff writers for structured settlement factoring companies or their marketing networks, their unwillingness to avail themselves of abundant research and their editorial and management's unwillingness to correct inaccuracies when they've been made aware of them. Here is an example of misinformation from a website called Annuity(dot)org that exists primarily to promote a single structured settlement factoring company called CBC Settlement Funding in Conshohocken, PA:

"A structured settlement is a type of annuity that pays out an award from a civil lawsuit by spreading the payments out over a long period of time". The Annuity(dot)org statement is not only inaccurate to say that a structured settlement is an annuity, but it's also inaccurate to say that a structured settlement pays out an award. A structured settlement is not an award. That's why a structured settlement includes the word "settlement". Otherwise it would be called a structured award, right?

.

most infomative structured settlement websites
By John Darer August 26, 2025
The 4structures.com website is one of the most comprehensive structured settlement resources, particularly for those who want detailed, expert-level information, according to Google AI
most informative
By John Darer August 22, 2025
Based on Grok's review of prominent sites as of August 2025, 4structures.com (including its associated blog at structuredsettlements.typepad.com) stands out as the most comprehensive. Run by structured settlement expert John Darer, it offers detailed guides, and specialized insights
fountain
By John Darer August 17, 2025
Retained asset accounts for life insurance beneficaries, are temporary accounts that earn interest, give you time to breathe and give you time to figure it out.. Retained asset accounts are pay nterest from the date of death to date of settlement of the claim as a general practice,
knuckles
By John Darer August 16, 2025
How to avoid a "Knuckles Sandwich" when entering into settlement of claims or lawsuits involving taxable damages, or elements of taxable damages. What is the intent of the Payor? What happens if the intent of Payor is not clearly set forth in the settlement agreement?
structured  settlements
By John Darer August 15, 2025
Structured settlement annuity issuers have stood the test of time, which is crucial if you're depending on them to pay you stable income for a long time or the rest of your life or pay your beneficiaries . For Structured settlement annuities . Call John Darer at 888-325-8640
New Y
By John Darer August 14, 2025
While rising yields have narrowed the gap for defendants in New York CPLR 50A and 50B projections, plaintiffs can still " fly inverted" and get plenty of "lift" when negotiating settlements by using savvy settlement experts
baseball caps of many colors
By John Darer July 29, 2025
The cap rate on index linked structured settlement annuities is a limit set by the insurance company on the maximum interest rate that can be credited to the annuity based on the performance of the underlying index that also helps provide the downside prtection..
longevity road
By John Darer July 28, 2025
Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can inlcude one or more customized payment streams and types.
USAA structured settlements
By John Darer July 16, 2025
USAA Life Insurance Company, an A++ rated insurance company, issues structured settlement annuities with 1%, 2% and 3% COLAs. USAA Life structured settlements are exceptionally compatitive on lifetime benefit payments with long duration certain periods for ages under 35.
MetLife Structured Installment Sales Now Available in New York
By John Darer July 8, 2025
Owners of highly appreciated NY businesses or NY real estate may benefit from a structured installment sale tax deferral program as an alternative to a 1031 exchange. MetLife's structured installment sale program is now available in NY and in all 50 states. Call 888-325-8640 for more info
More Posts