Structured Settlements
A structured settlement provides customized, tax-advantaged payments guaranteed by top-rated insurers to bring financial stability and security to injury or accidental death victims and their families.
What Is a Structured Settlement?
Personal injuries and accidental deaths create trauma and instability for individuals and their families. Beyond the physical and emotional challenges, many people face severe, long-term financial uncertainty. A structured settlement can help you establish the financial stability and security you need during this difficult time.
A structured settlement is a customized payment plan most commonly guaranteed by highly rated life insurance companies. It provides regular, tax-advantaged income designed specifically around your needs—whether that’s covering future medical care, replacing lost income, funding education, or planning for retirement. Unlike a lump sum that can be quickly spent or poorly invested, a structured settlement delivers reliable income when you need it most.
Structured Settlements Explained
Key Benefits of Structured Settlements
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- Tax-Advantaged Income – Federal tax law provides significant benefits for structured settlements. Claimants with physical injury claims (Internal Revenue Code Sign up for Finn Financial Group’s newsletter § 104(a)(1) & (2)) receive settlement proceeds and all future growth 100% income tax-free. Claimants with non-physical injury claims, such as employment disputes, benefit from tax-deferred growth on their principal and interest, with taxes paid only when they receive payments.
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- Safety and Security – Your payments are typically guaranteed by highly rated life insurance companies—many with over a century of financial stability. Multiple layers of consumer protection rules safeguard your payment stream.
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- Stability – Unlike investments subject to market volatility, structured settlement annuities provide guaranteed payments regardless of economic conditions. Your income is predictable and secure.
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- Customized to Your Life – You design the payment schedule around your specific needs—medical expenses, educational costs, living expenses, retirement income, or any combination that works for your situation.
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- Important to Know – Structured settlements are only available when resolving personal injury claims (both physical and non-physical) and must be arranged before your settlement is finalized. Once you receive a lump sum payment, you cannot structure it afterward.