A structured settlement is a voluntary agreement reached between a plaintiff and a defendant under which the plaintiff/claimant receives compensation for an injury, or wrong doing. Structured settlement annuities allow claimants to receive a stream of guaranteed payments designed to meet their specific needs.
Tax-Free Structured Settlement (Physical Injury)
Physical injury settlements can be designed in such a way to place a portion of the proceeds of the structured settlement into an annuity to provide 100% tax-free payments. Annuities are placed with the most highly rated life insurance companies available and provide unparalleled security for your clients.
Taxable Structured Settlement (Non-Physical Injury)
The taxable structured settlement annuity applies many of the same features of a tax-free structured settlement annuity to a wide range of cases providing guaranteed and reliable payments with a competitive rate of return on a tax-deferred basis to the claimant.
The full amount of the damage payment(s) is tax-free, exempt from federal and state income taxes under 104(a) of the IRS codes.
The claimant receives payments from one of the safest investments available: A highly rated life insurance company annuity.
The claimant receives the benefit of tax-deferral on their payments along with competitive rates of return.
The claimant receives periodic payments when needed as determined at the time of the settlement.