by John Darer® CLU ChFC MSSC CeFT RSP CLTC Updated September 1, 2026
Index-Linked Structured Settlements for Minors are being approved by New York judges
New York judges are approving index-linked structured settlements for minors in an Infant Compromise, as part of a proposed settlement planning allocation to complement fixed rate structured settlements in the current interest rate environment.
What’s the attraction? Priced at approximately the rate of a structured settlement with a 2.3% COLA, index-linked structured settlement payment riders on structured settlement annuities, issued by Pacific Life and Annuity Company in New York* and Pacific Life Insurance Company elsewhere, are ideally suited for a plaintiffs with a long time horizon.
An Index-Linked Annuity Payment Adjustment Rider is generally not a good fit for short-term structured settlements.
The initial adjustment cap since the product was introduced has been 5%. That’s 5% increase in payments on completion of the first year of payments , but the cost of a 2.3% COLA. If there was a down market the following year the minor’s payments stay the same, averaging out to a 2.5% increase annually over the two years with the exemplar. If you are concerned about low interest rates and have the time to spread out your payments then an allocation to the index-linked structured settlement is a good alternative, as some New York judges have discovered.
Download Index Linked Structured Annuity Pacific Life brochure
The ILAPA rider can be used for plaintiffs or structured attorney fees.
*Pacific Life & Annuity Company will issue annuity policies if ANY of the following occur inside the state of New York: solicitation, sales, negotiation of settlement, court/legal action, or claimant/payee residence.
2026 Update — New York Landscape for Index‑Linked Structured Settlements
Related Reading
Since this post first appeared in February 2015, when Pacific Life introduced the first‑generation index‑linked structured settlement product, the New York market has evolved significantly. Prudential has entered New York with its own index‑linked structured settlement offering, giving courts, attorneys, and settlement planners a second carrier option for market‑linked growth within the structured settlement framework.
Pacific Life, whose first‑generation product was the focus of the original post, has since developed a newer version. Pacific Life Introduces Payout Plus for Settlements – Structured Settlements 4Real®Blog March 7, 2026 Not yet available in New York, Coming soon, est. Q1 2027. But available elsewhere…
Index Linked Structured Settlement | Prudential Income Advantage was introduced in October 2023 (4structures.com) Read more The Index Effect Market-linked growth helping to mitigate risk
For readers tracking the broader national market, additional index‑linked offerings — including Independent Life’s iStructure Select — are available outside New York and may be useful for comparative context.
iStructure Select | Independent Life iStructure-Select-Overview-v3.pdf iStructure-Select-Brochure.pdf Not available in New York.
Index‑Linked Terms: Backed, Based On, and Linked Explained May 10, 2026