When individuals receive compensation from personal injury lawsuits, wrongful death claims, or other legal settlements, they often face a crucial financial decision: how to manage the payout. This is where structured settlement annuity companies come in. Instead of a lump sum, these companies provide periodic payments designed to ensure long-term financial security.
In 2025, with rising inflation, evolving tax rules, and new financial regulations, choosing the right structured settlement annuity company has never been more important. This guide will highlight the top 10 structured settlement annuity companies, explain how they work, and provide expert tips to help you make an informed decision.
What Is a Structured Settlement Annuity?
A structured settlement annuity is a financial arrangement where a claimant receives scheduled payments instead of a single lump sum. These payments can be monthly, quarterly, or annually, and sometimes even include large lump-sum disbursements at specific milestones (like college tuition or retirement).
Benefits of Structured Settlements
- Financial Stability: Guaranteed income stream.
- Tax Advantages: Often tax-free under U.S. law.
- Customizable Payments: Can be structured for medical bills, education, or retirement.
- Protection from Overspending: Prevents the risk of quickly draining a lump sum.
How to Choose the Best Structured Settlement Annuity Company
Not all providers are equal. Here are key factors to evaluate:
- Financial Strength Ratings – Look for companies rated “A” or higher by AM Best, Moody’s, or Standard & Poor’s.
- Payment Flexibility – Ensure they allow customization of schedules.
- Customer Support – Dedicated advisors who explain tax and payout implications.
- Experience in Legal Settlements – Firms with proven track records in handling personal injury or wrongful death cases.
- Competitive Rates – Compare annuity yields and settlement options.
Top 10 Structured Settlement Annuity Companies in 2025
Here are the most trusted and reputable providers this year:
1. Prudential Structured Settlements
- One of the largest insurance companies in the U.S.
- Offers flexible settlement designs tailored to individual needs.
- Rated A+ for financial strength.
- Known for long-term stability and reliable customer support.
2. MetLife Structured Settlements
- Strong track record in annuities and insurance.
- Provides customized payment schedules for medical and educational expenses.
- Excellent investment performance history.
3. Pacific Life Structured Settlements
- Highly rated by AM Best and S&P.
- Specializes in large claim settlements like wrongful death and medical malpractice.
- Offers tax-free structured annuities.
4. New York Life Structured Settlements
- One of the oldest and most stable insurers in the U.S.
- Provides tailored financial planning alongside settlement annuities.
- Focus on lifetime guaranteed payments.
5. Liberty Mutual Structured Settlements
- Trusted by personal injury attorneys nationwide.
- Provides flexible annuity options with inflation protection.
- Strong financial backing and customer-focused solutions.
6. AIG Structured Settlement Annuities
- Global financial powerhouse with diverse investment options.
- Provides customized settlement packages for high-value cases.
- Excellent for claimants needing international payout flexibility.
7. Berkshire Hathaway Structured Settlements
- Backed by Warren Buffett’s empire.
- Known for unmatched financial strength and reliability.
- Ideal for large settlements requiring lifetime coverage.
8. Mutual of Omaha Structured Settlements
- Excellent customer service and financial guidance.
- Offers tailored solutions for medical expense settlements.
- Strong AM Best ratings.
9. John Hancock Structured Settlement Annuities
- Provides innovative settlement solutions with flexible payment options.
- Known for retirement-focused annuity structures.
- Strong financial stability.
10. Guardian Life Structured Settlements
- Member-owned company with a focus on long-term financial health.
- Provides customizable annuity products.
- Trusted by attorneys and financial advisors.
Why Structured Settlement Annuities Remain Popular in 2025
Despite alternative investments like stocks and real estate, structured settlements are still widely chosen due to:
- Guaranteed Security: No market risk.
- Predictable Cash Flow: Consistent payments.
- Legal Protection: Payments are court-ordered and secure.
- Tax-Free Advantage: Most structured settlements remain untaxed.
Tips Before Choosing a Structured Settlement Company
- Compare Quotes – Get multiple payout projections.
- Check Reviews & Ratings – Independent agencies like AM Best provide financial health ratings.
- Consult a Settlement Attorney – Ensure your settlement plan complies with IRS guidelines.
- Avoid Early Buyouts Unless Necessary – Selling your settlement to third parties can result in major losses.
Frequently Asked Questions (FAQ)
Q1: Are structured settlement annuities safe?
Yes. They are backed by highly rated insurance companies, making them among the safest financial tools available.
Q2: Can I sell my structured settlement later?
Yes, but you may lose a significant percentage. Court approval is also required.
Q3: Are structured settlements better than lump sum payouts?
It depends. Structured settlements provide stability and tax advantages, while lump sums offer immediate access to money.
Conclusion
Choosing the best structured settlement annuity company in 2025 is one of the most important financial decisions after a legal settlement. Firms like Prudential, MetLife, and Pacific Life stand out as industry leaders, but your best choice will depend on your settlement amount, future expenses, and financial goals.
If you’re facing a personal injury or wrongful death settlement, consult with a structured settlement attorney and financial advisor before finalizing your choice. A well-structured annuity can secure your financial future for decades.