USAA Life Now Offers COLA on Structured Settlement Annuities

John Darer
July 16, 2025

Frame Your Financial House for Long Term Stability

USAA Life Insurance Company, based in San Antonio, Texas, and a provider of structured settlement annuities, announced in July 2025 that it would start quoting and issuing structured settlement annuities with fixed cost-of-living adjustments as a settlement planning option. The adjustments must be in whole integers, such as 1%, 2%, 3%, and so on.

USAA Life Insurance Company has traditionally had an appetite for long-term lifetime payment streams and remains highly competitive for annuitants up to age 30. The recent improvement in payment options is a welcome change.

USAA Life Insurance Company Financial Ratings are a Strength for those seeking a Long Term Payment Stream or Long Dated Deferred Lump Sums

A.M. Best	A++
Moody’s	Aa1
S&P	AA
Weiss	B+

Ratings Current as of July 16, 2025

How Does a Structured Settlement Work when a USAA Life Insurance Company Structured Settlement Annuity is the Qualified Funding Asset?

1. Parties enter into a Settlement Agreement and Release which part of the consideration includes an obligation to make futire periodic payments to the Plaintiff. [Step One in Flow Chart below]

2. Pursuant to the terms of the Settlement Agreement and IRC 130(c), the obligation to make future periodic payments to Plaintiff is then assigned by way of a Qualified Assignment to the Qualified Assignment Company and an Assignment Payment is made by the Defendant or its Insurer to the Qualified Assignment Company, USAA Annuity Services Corporation. [Step Two in Flow Chart]

3. Pursuant to the terms of the Settlement Agreement and Release, and the Qualified Assignment Agreement, the Qualified Assignment Company, USAA Annuity Services Corporation, purchases a Qualified Funding Asset, in the form of an annuity from USAA LIfe Insurance Company to fund the periodic payment obligation it assumes.