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Financial Security What can a Structured Settlement do for you?

Regardless of a particular settlement's design, structured settlements may have distinct advantages over an immediate lump sum. In most cases, both the defendant and the plaintiff will benefit.

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The defendant (who may be a corporation, liability insurer, or government agency) benefits through a faster, more efficient resolution, reducing the cost of prolonged litigation. Also, by assigning the obligation of payment to a financially sound third party, the defendant can feel secure knowing all future payments will be met.

Plaintiffs benefit by securing guaranteed income, a tax-free stream of payments. Free of the pressures of money management and the potential for dissipation of funds, the plaintiff can enjoy the peace of mind of financial security.

While structured settlements have these advantages, consideration should be given to individual situations before making a final decision.

Advantages of a structured settlement

  • All money paid to a plaintiff for physical injury damages under IRC Section 104 (a)(2) can be income tax-free regardless of when received.
  • The results of the settlement are guaranteed.
  • There is no cost for the management of the settlement funds.
  • Periodic payments may be designed to specifically fit the needs of the plaintiff.

A structured settlement is only as good as the company providing it

As a mutual company, we hold ourselves to the highest standards of transparency, objectivity, and integrity.

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Reach out to our toll-free number at (855) 469-5772 or email

1New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies as of 10/15/2020: A.M. Best (A++), Fitch (AAA), Moody's Investors Service (Aaa), Standard & Poor's (AA+).