Structured Settlements 4Real®Blog 2026

Structured settlements expert John Darer reviews the latest structured settlements and settlement planning information and news, and provides expert opinion and highly regarded commentary. that is spicy, Informative, irreverent and effective for over 20 years.

Recent Posts

about

The STRUCTURED SETTLEMENTS 4REAL® Blog is a highly regarded source for structured settlement news, information, and commentary, led by structured settlement and settlement planning subect mater expert John Darer CLU ChFC MSSC CeFT RSP CLTC. With two decades of operation, the blog and 4structures.com are recognized as comprehensive resources, offering detailed guides and specialized insights. Established in 2005, the blog caters to a broad audience, including legal professionals, injured individuals, families, and various stakeholders, providing reviews and opinions on settlement planning. John Darer, President of 4structures.com LLC, is a seasoned structured settlement expert with over 40 years of financial services experience and 31 years specializing in structured settlements. Based in Stamford, CT, he is a Certified Financial Transitionist and Registered Settlement Planner, holding insurance licenses in 45 states and the District of Columbia. John Darer is dedicated to transparency and advocacy, he emphasizes the importance of engaging trained and licensed professionals for settlement planning, offering valuable insights through his investigative journalism and professional commentary.
What Is A Structured Settlement Annuity? | Separating Fact From Fiction

What Is A Structured Settlement Annuity? | Separating Fact From Fiction

by John Darer CLU ChFC MSSC CeFT RSP CLTC

What is a Structured Settlement Annuity?

  • A structured settlement annuity is insurance product that (1) can provide multiple payment streams, Structured settlement annuity fact or fiction as well as (2) different types of structured settlement payments,  in a single annuity contract that can be customized to a person’s needs.
  • A structured settlement annuity is often (but not exclusively) used as a “qualified funding asset”, as the latter term is defined by IRC 130(d).

What is a Qualified Funding Asset?

For purposes of IRC 130(d), the term “qualified funding asset” means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States, if—

(1)  such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment,
(2) the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment, and the amount of any such payment under the contract or obligation does not exceed the periodic payment to which it relates,
(3) such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and
(4) such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days after the date of such assignment.
It should be noted that the term “structured settlement annuity” does not appear in IRC 130(d).

Examples of Where a Structured Settlement Annuity Would Not Be Used as a Qualified Funding Asset 

A structured settlement annuity can be used in cases involving taxable damages.  A non-qualified assignment is used in such cases  (or parts of cases) involving such damages.

Examples of What is NOT a Structured Settlement Annuity

  • Acquired structured settlement payment rights  (the rights to someone else’s structured settlement, also known as structured settlement receivables).  See the National Association of Insurance Commissioners’ statutory issue paper No. 160, issued April 6, 2019.  Plaintiffs, Counsel, Guardians Ad Litem, Probate and Surrogate judges and investors, should be leery of any attempt by a settlement planner or financial adviser to pass off the direct or indirect acquisition of factored structured settlement payment streams as a structured settlement annuity.  Such unregulated products carry higher risks than structured settlement annuities and may not have the same statutory protections.
  • A retail single premium immediate annuity is an annuity, but it is not a structured settlement annuity
  • A retail single premium deferred annuity is an annuity, but it is not a structured settlement annuity
  • A retail deferred index annuity is an annuity, but it is not a structured settlement annuity
  • A retail fixed index annuity is an annuity, but it is not a structured settlement annuity

None of these becomes a structured settlement annuity just because it is owned by an independent assignment company.

What Do Structured Settlement Annuity Issuers Say?

A quick survey of insurance companies underwriting structured settlement annuities shows that about half of them specifically identify with structured settlements. Not a single one would sell a structured settlement annuity to an independent assignment company.  

1. The Prudential Insurance Company of America

Single Premium Structured Settlement Annuity Certificate

2. Pacific Life Insurance Company/ Pacific Life and Annuity Company  (New York)

Single Premium Settlement Annuity

3. USAA Life  Insurance Company  

Single Premium Immediate Annuity  (For Use as a Funding Asset in Structured Settlement Assignments)

4. New York Life Insurance Company

Lists Plan as Structured Settlement on contract

Others do not.

Would any structured settlement annuity issuer sell a structured settlement annuity to an independent assignment company?

None of the structured settlement annuity issuers that we canvassed for this post on November 2, 2021 would sell a structured settlement annuity to an independent assignment company.

Assignment Fees

With one exception, Qualified Assignment fees will not be over $750 for a true structured settlement annuity

You may find some independent assignment companies charging higher fees, perhaps even asset based qualified assignment fees that are a significant multiples of what the insurance company subsidiary qualified assignment companies charge.

Last updated October 16, 2025

 

Posted in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Discover more from Structured Settlements 4Real®Blog 2026

Subscribe now to keep reading and get access to the full archive.

Continue reading