Structured settlements provide long-term financial security, but choosing the right annuity company is crucial. Whether you’re looking for a trusted issuer or selling your settlement on the secondary market, this guide compares top players, outlines essential regulations, and provides actionable tips to help you make informed decisions.
What Is a Structured Settlement Annuity?
A structured settlement annuity is a financial product where a claimant receives periodic payments instead of a lump sum, typically from a legal settlement. These annuities are usually funded by a third-party insurance company known as the issuer.
Two Categories of Structured Settlement Companies
1. Primary Annuity Issuers
These are large, financially stable insurance companies that issue annuities and guarantee regular payments.
Top Issuers in 2025:
| 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 |
Strengths:
- Backed by billions in assets
- Rated highly for long-term claims-paying ability
- Transparent with structured payouts
2. Secondary Market Buyers
These companies purchase existing annuity payments at a discount and offer you a lump sum upfront.
Leading Secondary Buyers:
| Company | Avg. Discount Rate | Payment Speed | Regulation Awareness | License Verified |
| 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 |
Key Risks:
- Loss of long-term income
- Deep discounts (you may get only 60–70% of the present value)
- Some states require a court order and cooling-off period
Testimonial (from Reddit):
“…instead of $1,000/month x 120 months … company offers $80,000 now … they take extra $40,000 as interest” — Reddit User
Regulatory Protections and Consumer Rights
The Consumer Financial Protection Bureau (CFPB) and several state laws regulate secondary market annuity transactions.
Key Regulations:
- Court Approval Required: Especially in Maryland and California
- Cooling-Off Periods: Typically 3–10 days to change your mind
- Licensing: Companies must be licensed in your state
“Trading with a factoring company may lead to court approval delays” — CFPB Notice
Sources:
Risk Mitigation Tips:
- Always ask for licensing information
- Read the court order thoroughly
- Consult a lawyer before signing
How to Choose the Right Structured Settlement Annuity Company
Consider These Factors:
- Financial Strength: Check A.M. Best, Moody’s, and S&P ratings
- Annuity Type: Fixed, Indexed, or Immediate?
- Withdrawal Flexibility: Do you need occasional access to funds?
- Fee Transparency: Are all costs disclosed upfront?
Calculator: Compare Your Options
Structured Settlement Calculator
Visual Guide: Choosing Your Path
Issuer Route:
- Long-term security
- Tax-deferred growth
- Stable payouts
Secondary Buyer Route:
- Quick cash access
- Potential financial loss
- Legally complex
FAQ
Is a structured settlement annuity safe?
Yes, if you stay with a reputable issuer. Selling in the secondary market introduces risk.
How does court approval work when selling my annuity?
You must file a petition. A judge ensures the sale is in your best interest before approving.
Can I sell only part of my annuity?
Yes, most buyers allow partial sales.
Final Thoughts
Choosing between a trusted annuity issuer and selling your payments for cash depends on your goals. Always verify company credentials, check regulation compliance, and seek financial advice before proceeding.
By understanding the structured settlement annuity landscape in 2025, you’re now empowered to make the best decision for your financial future.