Structured Settlement FAQs
Explore answers to frequently asked questions about Structured Settlements, including key information on Non-Qualified Assignments.
Frequently Asked Questions
A Structured Settlement can be used in a wide variety of case types. Personal injury, wrongful death and worker’s compensation qualify under a traditional structured settlement, or Qualified Assignment. Non-physical injury settlements, such as employment litigation, punitive damages and contract disputes, qualify under MetLife’s Non-Qualified Assignment.
The following list represents some common uses but is not limited to:
Qualified Assignment
- Personal Physical Injury
- Wrongful Death
- Worker’s Compensation
Non-Qualified Assignment
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Settlements that fall outside of personal injury cases, including employment litigation, punitive damages and contract disputes, are taxable.
Periodic payments can be made to the individual or the entity that holds an eligible claim/is named as a party to the settlement of the underlying claim or dispute. With MetLife approval, payees may include a trust, businesses, or corporations.
Traditional structured settlement periodic payments must begin immediately, typically within one year of the purchase date. Periodic payments must be substantially equal, paid out in regularly scheduled intervals and occur no less frequently than annually.
There are solutions for more flexible payment start dates through Structured Settlements Funding Agreements and MetLife’s Non-Qualified Assignment Flex Agreement, which offer options for payments starting beyond one year from purchase, lump sum payments and customized payment designs.
Yes, the traditional structured settlement periodic payments are life-contingent; the maximum issue age is 85. Life-contingent payments cease at the time of death. MetLife’s Non-Qualified Assignment Flex Agreement periodic payments cannot be life contingent.
Any remaining unpaid guaranteed payments continue to either the named beneficiary or the estate. If elected at the time of settlement, payments may be commuted upon death for the traditional Non-Qualified Assignment or follow the accelerated benefit event for the MetLife’s Non-Qualified Assignment Flex Agreement.
Need More Information?
If you have questions about structured settlements or would like to discuss your options, we encourage you to contact one of our experienced, licensed and appointed Structured Settlements Specialty brokers.