Policy Holders

A structured settlement is an arrangement that provides scheduled payments instead of, or in addition to, a single lump-sum settlement payment. Payments are commonly funded through an annuity issued by a regulated life insurance company.

Payment amounts and timing can be designed around anticipated needs and may include immediate, deferred, period-certain, or life-contingent payments. Tax treatment depends on the type of claim and applicable law. Consult your attorney and tax advisor before settlement terms are finalized.

Learn more about qualified structured settlements and non-qualified structured settlements.

Scheduled payments may help align settlement proceeds with recurring living expenses, medical needs, education costs, or other future obligations. They can also reduce the responsibility of managing an entire settlement as a single lump sum.

Payment guarantees are subject to the claims-paying ability of the issuing insurance company and the terms of the annuity contract. Structured settlement payment rights are generally not liquid, so immediate and future cash needs should be considered before the arrangement is finalized.

Payments for damages on account of eligible personal physical injuries or physical sickness may qualify for favorable federal income tax treatment under applicable law. Other recoveries may be taxable, and state tax treatment can vary.

Independent Life does not provide tax or legal advice. Consult qualified tax and legal advisors about your specific settlement.

Settlement proceeds and scheduled payments can affect eligibility for means-tested programs such as Supplemental Security Income and Medicaid. A coordinated settlement plan may use a special needs trust or other planning tools when appropriate.

Eligibility rules are complex and vary by program and circumstances. Work with qualified benefits, legal, and settlement-planning professionals before finalizing the settlement.

Some payment designs provide a guaranteed period or specified future payments that can continue to a named beneficiary or estate if the payee dies. Life-contingent payments generally end at death unless the contract provides otherwise.

Beneficiary provisions and tax treatment depend on the selected payment design and contract terms.

Scheduled annuity payments are stated in the contract, and Independent Life does not deduct a separate ongoing investment-management fee from those payments. Other professionals or planning arrangements involved in a settlement may have their own fees.

Review the settlement documents, annuity contract, and any related planning agreements before making a decision.

Independent Life is subject to state insurance regulation and reserving requirements. The company reports financial strength ratings of A from Egan-Jones and A- from KBRA and works with Hannover Re US as a reinsurance partner. Ratings are opinions as of their review dates, may change, and are not guarantees of future performance.

Our policyholder service team assists with payment questions, address and banking updates, beneficiary forms, and other contract-related requests. The Payee Protection Policy is designed to help protect payment rights from unfair factoring practices.

All guarantees are obligations of Independent Life Insurance Company and are subject to its claims-paying ability and the applicable contract terms. Contact Independent Life for policyholder assistance.