by John Darer® CLU ChFC MSSC CeFT RSP CLTC
What is a Structured Annuity Settlement?
A structured annuity settlement is a made up word for search engines. There is no such thing as a structured annuity settlement.
- A structured annuity, also known as a structured settlement annuity, when used as a qualified funding asset per IRC 130(d), is one method to fund a structured settlement.
- A structured settlement is a form of settlement that involves future periodic payments. All or a portion of a settlement can be structured provided there has not been constructive or actual receipt of the settlement funding.
- In addition to structured annuities, structured settlements may be funded with United States Treasury obligations, periodic payment assumption reinsurance or funding agreements.
When people speak of structured annuity settlements they are referring to structured settlements that are funded with annuities.
The Cart Before The Horse
Turning the familiar Renaissance figure of speech on its head, when it comes to structured settlements, the cart DOES come before the horse [ i.e the settlement obligation to make future periodic payments comes before the purchase of an annuity]. Read any settlement agreement that includes a structure!
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Last updated November 1, 2025