by John Darer® CLU ChFC MSSC RSP CLTC
Variety is the Spice of Structured Settlements
With annuity funded structured settlements there are many types of structured settlement payments. In any particular structured settlement contract, there may be one or more different payment streams. These payment streams may commence immediately or may commence in the future. You can even design a structured settlement so that some payments commence now and some commence in the future so that timing is aligned with certain known or anticipated needs.
Perhaps you are only familiar with the ubiquitous “20 years certain & life” with a “bunch of lump sums” commonly offered by the “short order chefs” of our industry. There is nothing wrong with short order if that is what you desire. Sometimes a greasy burger at the diner is just what you need. At other times, you may prefer a carefully planned, well-thought-out, and specially prepared meal for your palate. Whatever your style or preferences, a structured settlement can be customized to suit your needs and integrated into an overall settlement plan.
The rated age or impaired risk/ substandard underwriting effect on lifetime payout structured settlement annuities can be a huge plus. You can receive a contractual guarantee of lifetime payments for less money or a greater yield on the present value of every dollar of recovery depending on how you look at it.
Annuities are a Form of Insurance
Properly and creatively designed structured settlement annuities can be used as “insurance” in your settlement plan to protect your earnings stream and thus permitting a longer term perspective on the investment of the cash portion of your settlement.
Are Structured Settlements Flexible or Inflexible?
Some say that structured settlements are inflexible, but we’ve seen here that structured settlements really are flexible. The quid pro quo for any aspect of inflexibility is the favorable tax status and the spendthrift protection. The “master chefs” among us will draw upon our experience, think, plan and blend ingredients from the banquet menu of options in order to create an integrated solution.
Last updated October 1, 2025
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