Structured Settlement Glossary

Like life, structured settlements and annuities can be confusing.  There are lots of legal terms and industry jargon that are important to understand.  At Client First, we are here to help make things clear and simple to understand.  This glossary has definitions for industry and legal terms you may encounter. Please remember, we are always here and help is just a phone call away. Call us at (888) 594-1195.

Accumulated Value

The full value of the annuity contract paid over time. This includes the principal and any gain associated with the investment. This is sometimes referred to as total or aggregate value.


The individual receiving or entitled to the annuity payments. This is normally the plaintiff in the original case.


The term annuity refers to any stream of fixed payments over a specified period of time. In the case of a structured settlement, the annuity is usually a tax-deferred contract that can provide an income for a specified time, such as a number of years, or for the life of the individual.

Annuity Benefits

The guaranteed periodic payments that will be paid to the owner of an annuity during the payout period.

Annuity Contract

The agreement between the annuitant (normally the customer) and the annuity provider (typically an insurance company) that stipulates the features of the annuity, including the payments and responsibilities of each party.

Annuity Issuer

The insurance company that has issued a contract to fund periodic payments under a structured settlement.

Annuity Payment Period

The period of time where the customer receives payments or income from the annuity.

Best Interest Standard

Internal Revenue Code Sec. 5891 and most state laws require that a court find that a proposed settlement factoring transaction, or the sale of structured settlement payments, be in the best interest of the seller, taking into account the welfare and support of any dependents.

Client First Consultation

A free interview between a structured settlement annuitant and an account executive to discuss options to purchase your right to receive future structured settlement payments. This is often the first step to getting a cash quote, or net advance amount.

Court Order

A legally binding ruling issued by a judge or other court officer. The sale of the cash flows or periodic payments from a structured settlement typically require a court order.