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Also, being able to offer structured settlements /annuities like this can help the insurance company turn a smaller amount of money into “more.” For example, I’ve used them with plaintiffs who’ve been paid for their actual damages but I’m settling for their punitive damages. Plaintiff didn’t really need the money right now, but just had twins and he was worried about sending them to college if he couldn’t work in the future. We set up a plan where the money was set aside and allowed to grow until he was going to need for tuition in 18 years. That can look like a lot more $$ than just $100k lump sum right now. And it’s safe, and you’re not paying taxes on the earnings.

I’ve done similar things when people were concerned about retirement. We did one for a lady who was going to have to go into a nursing home. She’d had a stroke after the accident. We called around, figured out the monthly price of the premium assisted living/ nursing home in her area and set it up so she’d have the payments made until she died and she’d never have to worry about it.

I probably wouldn’t buy an annuity, but if I ever got a big insurance settlement, I would do a structure with an annuity.
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