Home    |     About JMW    |     Services    |     Resources    |     Contact Us
Loading
FAQ for Trial Attorneys
  1. Introduction
  2. What is a Structured Settlement?
  3. Advantages to the Plaintiff
  4. Disadvantages to the Plaintiff
  5. Managing the Disadvantages
  6. Appropriate Cases
  7. Inappropriate Cases
  8. Case Size
  9. Why Annuities?
  10. Annuity Pricing
  11. Reduced Life Expect. Discounts
  12. What is an "Assignment"?
  13. Structure of the Deal
  14. Insurance Company Ratings
  15. The Closing Process
  16. What Settlement Brokers Do
  17. How Are SS Brokers Paid?
  18. If the Defense Has Their Own Broker, How will My Broker Be Paid?
Home Page > "How to" For Plaintiff Attorneys >ABC's

Why Annuities?

It's the law. IRC Section 130 permits the use of only annuities and US Government obligations to fund qualified, assigned structured settlements. To secure the tax break, you may use these funding instruments only.

As a practical matter, nearly all structured settlements are funded with annuity contracts. The higher yield, added flexibility and longer duration they currently provide have all but eliminated US Government obligations as a primary funding choice.