January 05, 2015

Photo: Joseph BarnetPhysical injury claimants are turning to structured settlement annuities

"Overwhelmed by the difficulty of managing lump sum payments, physical injury claimants continue to turn to structured settlement annuities because of the financial certainty they provide," says Joseph Barnet, vice president and head of Prudential Retirement’s Structured Settlements business.

A structured settlement annuity consists of a tailored stream of scheduled payments designed to meet a physical injury claimant’s ongoing financial needs. These payments have several advantages, including exemption from federal and state income taxes and protection against reductions due to interest rate or economic changes. Interested in a claimant’s perspective? Watch this brief video.

Between 2000 and 2008, sales of structured settlement annuities climbed steadily to a peak of $6.4 billion, according to a recent white paper, "Structured Settlements: An Effective Solution for Meeting the Ongoing Financial Needs of Physical Injury Victims," from Prudential. And although the structured settlement market experienced a decline in sales during the economic downturn, 2013 saw a resurgence in transactions.

"Claimants want to ensure the proceeds of their settlements will meet their ongoing financial needs and many find themselves unprepared to meet the challenge of managing a large sum of money," says Barnet. "With a structured settlement they have peace of mind in knowing that their financial resources won’t be exhausted."

Interested in learning more? Read the white paper. Want to speak with Joseph? Contact Tanya Valle.