2025 Personal Injury Settlement Study

When personal injury settlement recipients reach a settlement agreement, they are often faced with a decision of whether to accept the settlement in a single lump sum payment or opt for a future stream of payments known as a structured settlement annuity (or some combination of both). The decision depends on several factors, including the settlement recipient's financial needs, life expectancy, ability to manage a large sum of money responsibly and future medical expenses. The study highlights:

• Information presented to personal injury recipients and considerations in their decision-making process
• Satisfaction—and any regrets—with their decision and the impact on their current financial situation

While lump sums provide immediate access and control over funds, structured settlement annuitants appreciate the stability and predictability offered by annuities despite recognizing that these payouts may limit flexibility and restrict certain investment opportunities.

Among the key findings, nine out of 10 annuity recipients said that monthly payments made it easier to manage their budget, while seven in 10 lump sum settlement recipients said their budget would be easier to manage if they had instead chosen monthly annuity payments.

Conclusion

The findings from MetLife's Personal Injury Settlement Study emphasize the importance of making an informed decision and the impact it can have on the settlement recipient and their families, the value of guaranteed lifetime income via a structured settlement annuity, and the potential regret that can accompany the flexibility and lack of guardrails associated with taking a lump sum.