A structured settlement can add certainty to a claimant's financial situation by establishing payments that are guaranteed and not impacted by market fluctuations or downturns in the economy.
- Security - Lifetime payment options may provide additional security to those concerned with outliving their funds. A structured settlement helps claimants avoid risks associated with other types of investments that can lead to premature depletion of savings
- Maximization of Benefits - With a structured settlement, a claimant can receive significantly more than with a lump-sum cash settlement, since fixed annuity payments may continue for life, no matter how long a claimant may live
- Income Tax-free payments - A structured settlement offers a solution to settle a personal physical injury claim (including wrongful death) with a future stream of income tax-free payments.1 Internal Revenue Code Section S 104(a)(1) and 104(a)(2) provides that the full amount of the structured settlement payments related to workers’ compensation and personal physical injury claims is income tax-free
- Flexibility - Payments are designed to meet a claimant's specific needs, and may include income replacement, college funds for dependent children and ongoing medical expenses. Benefit structures are flexible and designed to meet a claimant's unique needs. Payments may be scheduled for any length of time and may continue for a claimant's lifetime. Payments may be immediate or deferred and may be made in equal installments or may vary over time
- Beneficiary Protection - In the event of a claimant's premature death, the annuity can be structured so that a designated beneficiary will receive all future guaranteed payments
1 This tax exclusion does not apply to payments received for punitive damages. The federal tax law is subject to change and may be subject to different interpretations. United of Omaha does not provide tax advice. Neither United of Omaha nor its affiliates guarantees any of the intended tax consequences discussed herein. Neither United of Omaha nor its affiliates offers tax or legal advice. Any discussion of taxes in this material is intended to be general in nature and based on our understanding of the tax laws as they currently apply. Interested parties should consult their own tax advisors to determine how the tax law applies to their own situation. State tax laws may vary.