Concepts for Using Structured Settlements

There are various uses for structured settlements some of which are described below:


Let’s assume Mary is 55 years old and wants to protect her retirement account from stock market risk, but also would like a competitive yield.  She would like her income to start when she is age 65 and continue for 10 years until her other investments can grow to provide more income.

Mary purchases a structured settlement for $50,000 today inside of her IRA.  The structured settlement is payable by Prudential Life Insurance Company and grows for 10 years and then starts to pay out $1000/month for 10 years. Mary’s total payout is $120,000 which she purchased for only $50,000 today on a fixed guaranteed basis.

 For Short Term Fixed Rate:

 John would simply like to obtain a better yield for the next few years until the economy picks up.

John purchases a structured settlement for $75,000 which pays a lump sum of $95,000 3 years later from Allstate. John’s 3 year yield is 4% on a fixed, safe, guaranteed, insured investment. What rate are you getting on your fixed rates today for 3 years?

 For Transferring Money To Beneficiaries:

Bill and Susan are 84 and 81 respectively and have $50,000 they know they just want to keep safe for their grandchildren.  They also do not want to leave a monthly income as opposed to a lump sum so the money lasts longer.  Bill and Susan purchase a $50,000 structured settlement from State Farm that starts paying $1000/month starting 8 years from now.  Bill and Susan purchased this structured settlement inside of their revocable trust as payments will continue whether they are alive or not.

 For Income:

 James and Sally are age 73 and would like to increase their fixed yields which have drastically declined on their investments over the last several years.  James and Sally purchase 2 structured settlements.

The first structured settlement starts paying immediately from now until 10 years from now in the amount of $1000/month. The total payout is $120,000.  James and Sally purchased this for $90,000 today.  James and Sally also purchased a second structured settlement that starts paying in 10 years and continues to pay for 15 years or until they are age 98! James and Sally now enjoy a yield of 5.5% on their income when they were only getting 2% previously.

Take a look at our list of structured settlements that are available now: