If you’ve recently won a legal settlement or are considering your payout options, here’s a fact that could reshape your financial future: the structured settlement market reached a record-breaking $9.8 billion in 2024, its highest point in U.S. history.
This milestone isn’t just a headline for Wall Street—it’s a wake-up call for plaintiffs, attorneys, and financial planners. Whether you’re navigating a personal injury case, employment dispute, or whistleblower reward, this record growth reveals important trends and opportunities that can directly impact your money.
Let’s break down why the market is booming, what it means for your payout decisions, and how you can leverage structured settlements to secure your future.
What Is the Structured Settlement Market?
The structured settlement market refers to the total value of settlement funds arranged as long-term periodic payments, typically through annuities. Instead of receiving a lump sum, claimants agree to receive payments over time—monthly, annually, or in customized intervals—often for decades.
Structured settlements are commonly used in:
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Personal injury and wrongful death lawsuits
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Medical malpractice claims
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Workers’ compensation
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Whistleblower rewards
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Mass torts and product liability
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Employment and discrimination cases
The reason for the structured model is simple: it protects recipients from mismanaging large sums, ensures a long-term income stream, and often provides tax advantages.
Why Did the Market Hit $9.8 Billion in 2024?
Several converging factors fueled the explosive growth in the structured settlement market in 2024:
1. Inflation-Focused Planning
As inflation persisted, more plaintiffs and attorneys prioritized income predictability and protection over lump sums. Structured annuities offered a secure hedge against financial uncertainty.
2. Rising Legal Settlements
Mass torts, sexual abuse cases, whistleblower payouts, and high-profile civil settlements grew in size and frequency—driving more money into structured plans.
3. Index-Linked Annuity Popularity
With index-linked annuities offering market-based growth potential with downside protection, structured settlements became a hybrid between safe income and smart investing.
4. Court Endorsements and Tax Strategy
Legal rulings continued to validate structured settlements as powerful tax mitigation tools. Financial advisors and tax attorneys increasingly recommended structured payouts for high-value cases.
5. Insurance Carrier Expansion
Major life insurance companies—like MetLife, Pacific Life, and Berkshire Hathaway Life—expanded their structured settlement offerings, increasing liquidity and public trust in the system.
Bar Chart: Structured Settlement Market Growth (2019–2024)
Who Benefits from This Market Boom?
The $9.8B market milestone isn’t just good news for insurers. Here’s who else wins:
1. Legal Claimants
With more structure options, plaintiffs can customize payouts, access tax-saving features, and gain financial peace of mind for life.
2. Plaintiff Attorneys
Attorneys now have stronger incentives to recommend structured settlements—not just for client protection but as part of ethical and financial planning best practices.
3. Settlement Planners
Certified Settlement Consultants (CSCs) are in higher demand than ever. More claimants are seeking guidance on how to structure payouts efficiently and responsibly.
4. Insurers and Reinsurers
Companies like Berkshire Hathaway and MetLife are collecting billions in premiums, leveraging long-term annuity income to generate strong investment returns.
Real-World Example: How One Settlement Changed With Market Trends
In 2020, a $2 million personal injury plaintiff may have opted for a $1.5M lump sum and spent it within 5 years.
In 2024, the same type of plaintiff, influenced by market awareness, might instead choose:
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$1M structured over 20 years ($5,000/month)
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$400K placed in an index-linked annuity
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$100K lump sum for immediate needs
This hybrid payout strategy reflects a more financially literate, long-term planning mindset that has grown in parallel with the market.
Why You Should Care as a Potential Claimant
Here’s what this market shift means for you:
1. More Customization = More Control
You now have better tools to structure your settlement with flexibility. Payments can be tailored for retirement, college funding, medical needs, or even inflation indexing.
2. Tax Savings Are More Accessible
Structured settlements help defer or eliminate taxes in certain injury-related cases. You could legally avoid IRS penalties or income spikes if planned correctly.
3. Hybrid Solutions Are the New Norm
You’re not stuck with “all or nothing.” Many structured settlements now include lump sums, index-linked components, lifetime benefits, and even supplemental life insurance.
4. Better Access to Experts
Financial planners, tax attorneys, and structured settlement consultants are increasingly familiar with these tools, making it easier to find support.
Comparison Table: Lump Sum vs. Structured Settlement in 2024
| Feature | Lump Sum | Structured Settlement |
|---|---|---|
| Payment Control | Full control immediately | Scheduled over time |
| Risk of Misuse | High | Low |
| Tax Treatment (injury case) | May be exempt, but no deferral | Often tax-free & structured |
| Inflation Protection | None | Moderate to high (if indexed) |
| Custom Planning | Limited | Highly customizable |
| Long-Term Stability | Low | High |
Common Use Cases in 2024’s Surge
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Camp Lejeune Water Contamination Settlements
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Opioid Class Action Payouts
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Sexual Abuse Claims Against Institutions
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Whistleblower Rewards (SEC & IRS)
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Wrongful Termination and EEOC Settlements
Smart FAQs
Larger settlement amounts, inflationary concerns, and the popularity of index-linked annuities led more plaintiffs and attorneys to adopt structured payouts.That depends on your goals. Structured settlements offer long-term security, tax advantages, and protection from poor financial choices—especially for large awards.Not all. Physical injury claims are ideal candidates, while employment or punitive damages may require special planning. Talk to your attorney or financial advisor early.Yes. Many structured settlements include partial lump sums for immediate needs, with the remainder distributed over time.You’ll need to work with your attorney, a structured settlement consultant, and the defense team before the settlement is finalized. Once paid out, structuring is no longer an option.