Structured Settlements

For 30 years, 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 almost 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.

Attorney Fees

Structuring attorney fees provides the claimant's attorney the opportunity to receive a guaranteed income stream that he/she can rely on. The payments can be tailored to meet immediate or deferred needs of the attorney. Additionally, by structuring the fees, there is potential to defer Federal taxation until payment is received by the attorney.

Other potential benefits of structuring attorney fees include:

• Flexibility - Fees could be structured in a number of different ways, depending on an attorney's own unique circumstances.
• Retirement Planning – Structuring attorney fees could help create a supplemental source of retirement income.
• Other potential uses – Structuring fees can provide funding for estate planning, children's college education, law firm overhead expenses, long-term care needs and more.
• Stand-alone attorney fees – Fees can be structured even if a claimant chooses not to structure their settlement funds.
• Guaranteed Income – Structuring could allow for a steady stream of income over a specific timeframe or a lifetime. This guarantee is backed by the financial strength of MetLife.4
• No management fees – Unlike many other investments, by structuring fees, an attorney can avoid additional management fees.

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.