Structured Settlements

Our Commitment to Providing Long-Term Financial Security

Backed by 40+ years of experience and strong financial stability,¹ MetLife provides brokers and attorneys with the tools and insights to design structured settlements that support long-term needs and offer steady, reliable income for claimants.

Our clients know they can count on us. In fact, we are the leader in structured settlements.  The MetLife enterprise ranks #1 in structured settlements sales, according to Life Insurance Marketing and Research Association (LIMRA) reported data.²

What is a Structured Settlement?

A structured settlement is an agreement between a claimant and a defendant under which the claimant receives settlement funds in the form of a stream of periodic payments. After the defendant settles with the claimant, the defendant assigns its obligation to make periodic payments to an assignment company, which purchases an annuity from Metropolitan Tower Life Insurance Company (Met Tower Life). Met Tower Life then makes periodic payments directly to the claimant under the annuity contract.

 A structured settlement may be agreed to privately, in a pre-trial settlement, or may be required by a court order, which often happens with cases involving minors. Structured settlements provide a solid foundation for future financial security. It is important to carefully evaluate the choices available and decide which payment option is most appropriate.

MetLife’s Early Entrance into the Structured Settlement Market

In 1982, Congress authorized the use of structured settlement annuities, allowing claimants in personal injury, wrongful death, and workers’ compensation cases to receive tax-free income through a structured settlement annuity rather than a single lump sum. This change helped protect claimants from the potential financial risks of managing large settlements on their own.

MetLife was one of the pioneer companies in the structured settlement market, becoming one of the first life insurers to offer these settlement solutions in 1983 through Metropolitan Life Insurance Company. In 2017, MetLife expanded its capabilities by issuing structured settlement annuities through a subsidiary, Metropolitan Tower Life Insurance Company, further strengthening MetLife’s commitment to long‑term financial security for claimants.

Benefits of a Structured Settlement

For many claimants, a structured settlement isn’t just a financial decision. It’s part of rebuilding life after a serious physical injury.

Tax-Free Income

A structured settlement is a one-time opportunity to settle a personal physical injury claim, including wrongful death, with tax-free benefit payments.³ It is tax-free based on Section 104(a)(2) of the Internal Revenue Code. By contrast, the investment earnings on a lump sum payment are usually fully taxable.⁴

Predictable Income

Guaranteed structured settlement payments can provide claimants with predictable income for the rest of their lives. These payments can be customized to fit their financial needs.⁵

Guaranteed Payments for Life⁵

The availability of lifetime payments can be of critical importance to claimants, since lifelong income can provide them with increased financial security. Now that people are living longer, many people are concerned about outliving their savings.

Payments to the Beneficiary

Guaranteed structured settlement payments can be received by the named beneficiary on a tax-free basis.^4,5 If a claimant accepts a settlement in a lump sum, there is no guarantee that there will be money available for a named beneficiary after the claimant’s death.

Protect and Grow Your Settlement

A lump-sum settlement of $500,000 can deliver significantly more value when used to purchase a structured settlement annuity. For a 21-year-old male, applying the full amount toward a 30-year certain and life annuity would provide $2,251 in monthly payments and a total guaranteed payout of $810,454. If he lives to his full life expectancy, the total payout would be $1,553,369.