The Advantages of Structured Settlements

Structured settlements are an important part of settlement planning. When your client is awarded financial compensation as a result of a workplace injury or damages, you want to ensure that the funds from their settlement will be available when they need them. When working with a skilled settlement planner, structured settlements can be utilized to balance your client’s expectations and goals with an effective payment plan that considers their best interests. Your client might want to cash out in one fell swoop, but we recommend hiring an experienced settlement planner to chart their course to a successful financial future using a structured settlement.

Consider the Future

Structured settlement annuities can be customized to your liking. For example, you can design this settlement to consider your future expenses and income to keep your finances balanced. Depending on your client’s preference and the advice of a settlement planner, a structured settlement can be paid monthly, annually, semi-annually, in a sequence of lump sums, deferred up to 20 years before starting, or even spread out in payments for the rest of the claimant’s life.

Save on Taxes

When you utilize structured settlement annuities to make a claim against an employer or another responsible party, the principal and interest earned on the settlement is tax exempt (IRC 104(a)(2)). On the other hand, if you opt into a structured settlement as a result of a case involving taxable damages, your settlement will not be tax exempt, but it will be tax deferred which can lead to considerable tax savings.

Guarantee a Suitable Rate of Return

Structured settlement annuities are fixed annuities, meaning they pay the precise amount established when the annuity quote was first presented in the annuity contract. Unlike variable annuities, fixed annuities guarantee a consistent rate of return which protects the claimant from stock market fluctuations and the potential to lose value on their settlement. Today, structured settlement annuities are offered and guaranteed by many of the life insurance industry’s most notable companies.

Benefit from Medical Underwriting

Structured settlement recipients can benefit from lifetime payments if they work with a medical underwriter to review their medical history. Medical underwriters review your client’s medical history and allocate a “rated age.” This age will be considered in lieu of the claimant’s biological age, which often leads to higher payouts. If your client has suffered a serious injury, working with a medical underwriter to establish their rated age can significantly increase the value of the payments being issued to your client.

Structured settlements can help improve the outcome of your client’s personal injury or taxable damages claim. If you would like to learn more about our settlement planning services, including structured settlement annuities, contact Synergy Settlement Services.

For more information or to schedule a consultation, please submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.


"I learned of Synergy through the state trial lawyers association when I was looking for help in dealing with Medicare. As you know, dealing with Medicare can be difficult and time consuming. We all get the articles and updates regarding Medicare, but Synergy does an incredible job of clarifying so many questions. I cannot thank you and the Synergy staff enough for the assistance, insight, and professionalism. You can be sure that I will only be recommending Synergy to my clients for Medicare issues in the years to come."

Jared P. Greenberg
Greenberg & Strelitz, P.A.

"In my twenty-two year career as a trial lawyer I've handled my share of catastrophic cases and structures, but imagine the complexity of an engaged, unwed mother catastrophically injured during delivery, giving birth to a healthy child, but left in a vegetative state? The issues of guardianship and entitlements of the newborn, the rights of the biological father-fiancé, an out-of-state teenage child of the mother, lifetime maintenance of the mother, as well as the rights of family of the mother, who became her primary care-takers? Synergy systematically managed the seven figure tender of one defendant, the establishment of a Qualified Settlement Fund, a Special Needs Trust, and multiple structures, all the while concurrently maintaining the various entitlements to ancillary services, as well as the remaining litigation. Everything was handled professionally, timely and literally without a hitch. Truly an amazing feat."

Marcus J. Michles II
Michles & Booth

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