by Structured Settlement Watchdog
It’s a Jumble Out There
I was surprised to find this fixed income annuity Jumbleaya on the website of a group of esteemed industry colleagues:
- “A fixed income annuity is an annuity with some guarantee against loss while also allowing for market rates of return inside the annuity.
- The upside in these annuities is usually capped at some amount, but the annuities offer downside protection (i.e., if the markets go down, the annuity payments remain the same).
- So, a fixed annuity often offers the potential of better rates of return than the structured settlement annuity fixed rates are offering”.
Note: I’ve bullet pointed to isolate the 3 statements for ease of appreciating the contradiction.
What does ” Fixed” mean?
Fixed Definition & Meaning – Merriam-Webster “not subject to change or fluctuation (e.g. a fixed income) “
What is an income annuity?
Income annuities are an insurance product issued by life insurance companies that convert a premium to income starting immediately ( Immediate Annuity or ” SPIA” ), or in the future (Deferred Income Annuity or “DIA”)
What Is a Fixed Annuity? Uses in Investing, Pros, and Cons (investopedia.com)
What are Index Linked Annuities?
An indexed linked structured settlement annuity is a tax-advantaged type of structured settlement option that provides protection for when the market goes down, combined with an opportunity for growth that varies with the market index the annuity is tied to. It gives you more income growth potential than a fixed income structured settlement annuity. or a fixed income structured settlement income annuity with a fixed percentage COLA, along with less risk and less potential return than a variable annuity.
Three life insurance companies that issue structured settlement annuities have index linked structured settlement annuity options:
- Pacific Life Insurance Company and Pacific Life & Annuity Company introduced their Index Linked Annuity Payment Adjustment Rider (ILAPA), in 2014 ILAPA (pacificlife.com) Next gen version in 2026!
- Independent Life Insurance Company introduced iStructure in 2021 iStructure Annuity | Industry’s 1st Uncapped Index-Linked Structured Settlement Annuity ; and expaned to iStructure Select in 2025.
- The Prudential Insurance Company of America introduced Income Advantage Prudential Income Advantage | Structured Settlement Index Linked (4structures.com) Guaranteed Income Secure Growth Potential (scene7.com). Prudential refers to its product as “index linked” in consumer facing communication.
At the moment, no life insurance companies provide variable structured settlement annuities. However, there are other market-based periodic payment options available for various types of settlements. Just ask if you’re interested in exploring these opportunities.
Last uodated November 25, 2025