Amica's Structured Settlement Difference
Structured Settlement
vs.
Traditional Annuity
Comparison Chart
| FEATURES | TRADITIONAL ANNUITY | STRUCTURED SETTLEMENT ANNUITY |
| Premiums | Consumer pays | Defendant pays |
| Ownership | Consumer owns | Defendant or assignee owns |
| Security | Life company assets / state fund |
Life company assets / assignee / guarantor / state fund |
| Design Types | Immediate and deferred | Immediate and deferred |
| Payment Types | Single / multiple premium | Single premium |
| Interest Types | Fixed and variable | Fixed |
| Tax Treatment | Generally tax-deferred | Tax-free |
| Guaranteed Rate | Initial / renewal / guaranteed minimum | Offered rate |
| Fee Charges | Surrender / withdrawal / other fees Contract fee |
No fee charges (premium tax some states for pre- 1997 W/C) |
| Features | Life only Life and period certain Joint and survivor Age-rated life |
Life only Life and period certain Joint and survivor Age-rated life |
| Upon Death | To beneficiary Discounted value |
To beneficiary Discounted value |
| Provisions | Free look Application Contract document |
No Free look No Application Contract and release documents |
| Factoring | No | Yes Structured Settlement Protection Acts (state) Victims of Terrorism Tax Relief Act (federal) |
