Structured settlements provide a reliable stream of income, often resulting from personal injury lawsuits or legal settlements. But how do they work? And how do you know whether to keep receiving periodic payments or sell them for a lump sum? This guide explores the top issuers, product types, regulatory protections, and financial implications to help you make the smartest decision possible in 2025.
What Is a Structured Settlement Annuity?
A structured settlement annuity is a financial agreement where a claimant receives periodic payments over time instead of a single lump-sum payment. The defendant funds the annuity through a life insurance company that guarantees payment.
Top Structured Settlement Issuers in 2025
Below is a comparison of leading primary market issuers, based on financial strength, flexibility, and product offerings.
| Company | A.M. Best | Moody’s | S&P | Annuity Types | Withdrawal Flexibility | Fee Transparency |
|---|---|---|---|---|---|---|
| New York Life | A++ | Aa1 | AA+ | Fixed, Immediate | Moderate | High |
| Pacific Life | A+ | A1 | AA- | Fixed, Indexed | High | Moderate |
| MetLife | A | A3 | A+ | Fixed, Indexed | Low | Moderate |
| Berkshire Hathaway | A++ | Aa2 | AA+ | Fixed, Immediate | Low | Low |
Issuer Strengths:
- Highly regulated and rated by top agencies
- Backed by billions in reserves
- Tax-deferred, guaranteed income streams
Annuity Product Deep Dive
| Type | Description | Pros | Cons |
| Fixed Annuity | Pays a set amount monthly | Predictable, low risk | Inflation risk |
| Indexed Annuity | Linked to market index like S&P 500 | Potential growth, some guarantees | Complex, capped gains |
| Immediate Annuity | Starts payments within a year | Fast access to income | Irrevocable decision |
Should You Sell Your Structured Settlement?
Selling your structured settlement means you trade future payments for a discounted lump sum. Here’s what you need to know:
Key Considerations:
- You may receive only 60-80% of the present value
- State and federal laws require court approval
- Some buyers are unlicensed or offer unfair deals
Real Testimonial:
“…Instead of $1,000/month for 10 years, the company offered $80,000 now. They pocket $40,000 in interest.” — Reddit User
Secondary Market Buyer Comparison
| Company | Avg. Discount Rate | Payment Speed | Regulation Awareness | Licensed |
| J.G. Wentworth | 9–15% | 2–3 weeks | High | Yes |
| Peachtree | 8–14% | 2–4 weeks | Moderate | Yes |
| Fairfield Funding | 10–18% | 3–5 weeks | High | Yes |
State-by-State Regulation Summary
Certain states offer more protection than others.
- Maryland: Requires a cooling-off period and proof sale is in best interest
- California: Mandatory court approval; strict disclosure rules
- Texas: Buyer must register with the Secretary of State
“Trading with a factoring company may lead to court approval delays.” — CFPB
Risk Mitigation Tips:
- Verify company licensing
- Request court documents
- Consult a financial advisor or attorney
Interactive Calculator: Lump Sum vs Payment Value
Use this tool to understand the true cost of selling.
Infographic: Decision Tree — Sell or Keep?
- Do you need emergency funds? → YES
- Is the discount rate below 10%? → YES
- Is the buyer licensed & court-approved? → YES → Consider selling
If NO to any of these, reconsider.
Final Thoughts
Structured settlement annuities offer long-term stability, but life circumstances can justify a sale. Compare your options with financial data, regulatory guidance, and interactive tools. By understanding issuer strength, annuity products, and secondary market risks, you can confidently manage your settlement in 2025.