Structured Settlements
For over a quarter-century, MetLife has provided financial security through structured settlement annuities for the claimants of personal injury settlements. Our structured settlement annuities are offered exclusively through structured settlements specialty brokers who look to MetLife for our expertise and ability to structure exactly the right settlement for the situation.
The Benefits of MetLife Structured Settlements include:
Tax-free income. A structured settlement is a one-time opportunity to settle a physical injury claim (including wrongful death) and/or workers' compensation claims, with a future stream of tax-free benefit payments.1 Section 104(a)(2) of the Internal Revenue Code ("Code") clarifies that the full amount of the structured settlement payments related to personal injury claims is tax-free. Code Section 104(a)(1) provides similar tax relief for workers' compensation awards. By contrast, the investment earnings on a lump sum payment are usually fully taxable.2
Customized payment streams. A MetLife structured settlement can be tailored to meet a claimant’s specific needs. Payments can be scheduled for any length of time, including over a claimant’s lifetime. Payments can be made in equal amounts or can vary over time, and can begin immediately or be deferred. Payments can also be designed with escalators and benefit increases to address future inflation concerns, and may be scheduled to include future lump sum payouts for things such as necessary medical care or equipment, a down payment on a house, or educational needs for children.3
Payments for as long as the claimant lives. In times of increasing longevity, when many people are concerned about outliving their savings, the availability of lifetime payments can be of critical importance to claimants. Lifelong income can provide a claimant with increased financial security.
Payments to the beneficiary. If a claimant accepts an all-cash settlement, there is no assurance that funds will remain after death for a named beneficiary. However, guaranteed structured settlement payments can be received by the named beneficiary.4,5
For more information on MetLife Structured Settlements, please click here to log onto MetLink.
If you are an existing MetLife Structured Settlement annuitant, please call 1-800-638-2704 should you have questions regarding your contract.
MetLife Settlement PlusSM provides for participation in the performance of equity markets, through funding options which are linked to the performance of Investment Divisions (fund portfolios with a diversified pool of assets) under the variable income annuity.
Here's how it works:
At least half the settlement consideration applied to the purchase of the annuity must be allocated to a fixed payment stream. This portion will be used to provide a fixed-dollar amount monthly, quarterly, semiannually, annually, or in lump sums payments.
The balance of the settlement (from 0% to 50%) may be allocated to a variable income option. In this case, payments are based on a fixed number of annuity units, according to a schedule established in the settlement agreement. However, on the variable income portion (0%-50%), the amount of each payment will vary, depending on the investment returns of the Investment Divisions you select within the variable annuity.
Payments are variable when a portion of the settlement proceeds is allocated among six available Investment Divisions which are chosen based upon your risk tolerance. This offers the opportunity to diversify the investment and help reduce market risk. While diversification is a useful technique that can help to manage overall portfolio risk and volatility, there is no certainty or assurance that a diversified portfolio will enhance overall return or outperform one that is not diversified.
For more information on MetLife Structured Settlements, please click here to log onto MetLink.
If you are an existing MetLife Structured Settlement annuitant, please call 1-800-638-2704 should you have questions regarding your contract.
MetLife Settlement PlusSM variable annuity is offered by prospectus only which is available from a MetLife representative. Investors should carefully consider the information in the prospectuses about the contract's features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding choices. Please read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. All product guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.
The amounts allocated to the variable investment options of the account balance are subject to market fluctuations so that, when withdrawn or surrendered it may be worth more or less than its original value.
MetLife Settlement PlusSM is issued by Metropolitan Life Insurance Company, New York, NY 10166, and distributed by MetLife Investors Distribution Company (member FINRA), Irvine, CA 92614. Policy Form # G.4333-20.
Circular 230 Disclosure: The information contained in this communication is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of this product marketed by MetLife and its affiliates. You should seek advice based on your particular circumstances from an independent tax advisor.
1 This tax exclusion does not apply to payments received for punitive damages or to damages received on account of medical expenses previously deducted on Federal tax returns. The tax law is subject to change and to different interpretations. MetLife does not provide tax advice.
Neither MetLife, nor its affiliates guarantees any of the intended tax consequences discussed herein. Moreover, neither MetLife 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.
Current tax law and ERISA are subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. You should consult with and rely on your own legal, accounting, ERISA and tax advisors.
2 As described by the National Structured Settlement Trade Association.
3 Section 130 of the Code requires that such payments be fixed and determinable as to amount and time of payment.
4 Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to the claims-paying ability and financial strength of Metropolitan Life Insurance Company . MetLife guarantees payment of a MetLife annuity issued by a wholly owned subsidiary.
5 Federal and State Estate Taxes may be due upon death based on the value of any remaining payments.
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