Structured Settlement Annuities Primary Market $9.551 in 2024
John Darer • January 8, 2025
Smashes Previous Highs Through Rates, Innovation and Hard Work
The structured settlement primary market reached an all time record high in structured settlement annuity placements in 2024, with year end industry structured settlement annuity production clocked at just shy of $9.6 billion. MetLife was again the front runner, with 2024 production $29.2 million shy of $3 billion, while 3 other companies exceeeded $1 billion.
MetLife $2,970,800,000
Pacific Life $1,840,900,000
Prudential $1,399,120,000
USAA Life $1,239,000,000
New York Life $ 883,805,172
Independent Life $ 451,656,993
American General $ 415,612,696
United of Omaha $ 358,700,000
Notes
- MetLife includes underwriting companies Metropolitan Life Insurance Company and Mettrpolitan Life Insurance Company
- Pacific Life includes Pacific Life Insurance Company and Pacific Life & Annuity Company
- American General includes American General Life Insurance Company and United States Life Insurance Company in the City of New York
- Prudential includes The Prudential Insurance Company of America.
Why Structured Settlements? Because Certain Sells®
Structured settlements offer predictable income streams, which can be appealing to rein in uncertainty. Here are some other reasons that structured settlements are increasingly being used to settle cases:
- Financial Security: Structured settlements provide a steady income stream over time, which can offer long-term financial stability to plaintiffs. This is particularly beneficial for individuals who may not have the financial acumen to manage a large lump sum effectively.
- Tax Benefits: Payments from structured settlements for personal injury or wrongful death cases are often tax-free. This can result in significant tax savings for the recipient, making it a more attractive option compared to a lump sum payment. See Tax Advantages of Structured Settlements | Taxable Equivalent Yield Chart
- Customization: Structured settlements can be tailored to meet the specific needs of the plaintiff. Payments can be scheduled to cover future expenses such as medical bills, education costs, or housing needs, providing a customized financial solution.
- Protection from Overspending: By receiving periodic payments, plaintiffs are less likely to spend the money quickly or unwisely. This helps ensure that the funds are used for their intended purpose and provides ongoing financial support. Types of Structured Settlement Payments | Structured Settlement Payment Options
- Legal and Financial Support: There has been an increase in the availability of legal and financial advisors who specialize in structured settlements. These professionals can guide plaintiffs through the process, ensuring they make informed decisions and maximize the benefits of their settlement.
- Economic Stability: In times of economic uncertainty, structured settlements offer a predictable and stable source of income, which can be reassuring for plaintiffs who are concerned about future financial stability and viability.
These factors combined make structured settlements an attractive option for both plaintiffs and defendants and attorneys in various types of legal cases. Do you have any specific questions about how structured settlements work or their benefits?
Last updated February 18, 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..
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 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.
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
A qualified assignment is part of the process to establish a structured settlement that enables a Defendant, Insurer, or Qualified Settlement Fund, to achieve a complete novation of the future periodic payment claim established by suit or agreement, through a substitution of obligors.
An annuity and a structured settlement walked into a bar, how do you tell them apart? 4structures' John Darer reviews the differences for you right here.
A lifetime structured settlement annuity turns part of your settlement recovery into guaranteed income you can’t outlive that is contractually guaranteed by a regulated life insurance company. A lifetime annuity is sometimes referred to as longevity insurance.
Structured settlement annuities can be very helpful to the budgeting process by providing guaranteed income streams and deferred lump sum payments tailored to specific budget needs and time frames identified in the settlement planning process.
Structured settlement receivables are often deceptfully marketed to investors as annuities. When the originating structured settlement factoring company buys structured settlement payments in a structured settlement factoring transaction, they are buying a receivable not an annuity.
Avoid constructive receipt if a structured settllement or structured attorney fee is to be established. Care must be taken to avoid constructive receipt.
