Structured Settlements 4Real®Blog 2026

by John Darer CLU ChFC MSSC CeFT RSP CLTC

I asked Microsoft’s AI what was the difference between a structured settlement and an annuity and this was the result

Aligned

“A structured settlement is a form of negotiated settlement of claims and lawsuits in which some portion of damages is paid in the form of periodic payments. It is not a financial product, but rather a method of payment¹. On the other hand, an annuity is a financial product that provides a guaranteed stream of income over a specified period or for life^{1 2}.

Trails Diverge

“While structured settlements are often funded by annuities, they are not the same thing. Annuities can be purchased by individuals, while structured settlements are awarded by courts to plaintiffs². Additionally, annuity sales do not require court approval if you purchased or inherited the annuity, whereas structured settlement payments require court approval to sell².”

I hope this helps clarify the difference between the two”, said Microsoft AI Bing.

Bing cited sources as follows :   1.  4structures.com, and 2. Annuity.org

Bing AI is unable to discern fact from fiction when it comes to the tractor beam of the ” awarded a structured settlement” vortex.

Structured settlements are negotiated and are the result of a compromise

Awards are not settlements

• A Grammy Award is not a settlement 
• An Academy Award (Oscar) is not a settlement
• If the President pins the Medal of Honor on you it is not a settlement
• If you successfully pin the tail on the donkey’s rump while blindfolded, that’s not a settlement for you or the donkey.
• If you make Dean’s list, it’s not a settlement
• If you win the 200 yard Butterfly at a swim meet, and get a ribbon or medal, that’s not a settlement
• If you win a spelling bee in second grade and get a ribbon, it’s not a settlement

Related Reading

Lists of civil awards and decorations of the United States – Wikipedia

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Annuity.org | Sweeping Up Poor Annuity.org Research

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Awarded a Structured Settlement Vortex August 19, 2018

You Negotiate. If a Compromise is reached, it may include a structured settlement