Great Things About Structured Settlement Annuities and Taxes

• Structured settlement annuity payments, received on account of a personal physical injury, do not count as income for tax purposes. This exemption applies to both the original amount invested in the structured settlement annuity and any interest earned on it over time.
• Income from structured settlement payments also does not affect your eligibility for Programs such as: Medicaid, Social Security Disability benefits or other forms of Government aid.
• In the event of the recipient’s death, the contract’s designated heir can continue receiving future payments, tax-free.
• Annuity payments can be scheduled to last for almost any length of time.  Payments can begin as soon as the annuity is executed or be deferred for as many years as required. Annuities can also include scheduled lump-sum payouts as well as benefit increases to plan for future expenses.
• The insurance company that issues the annuity guarantees your payments. In the unlikely event that the insurance company becomes insolvent, your state’s insurance association still protects you from loss.