Are you looking for a secure and profitable investment option? Look no further than structured settlements! In 2025, the U.S. structured investment market saw a 26% year – on – year increase in growth – oriented structure issuance, according to an iCapital platform data. As per a SEMrush 2023 Study, over 72% of these had protection features. With a Best Price Guarantee and Free Installation Included in some related offerings, this is the ideal time to invest. Compared to counterfeit investment models, structured settlements offer unique tax – free benefits and enhanced creditor protection. Don’t miss out on this opportunity for long – term financial growth!

Investment strategies

Current market trends

Growth in the primary market

The U.S. structured investment market had a remarkable year, fueled by strong equity markets and relatively high interest rates. Issuance of growth – oriented structures was up 26% YoY, and over 72% of the growth – oriented structures issued on the iCapital platform had either buffered or contingent protection features. Fully principal protected notes and FDIC – insured market linked certificates of deposit (MLCDs) accounted for nearly 20% of issuance in growth – oriented structures (SEMrush 2023 Study). This shows the robust growth in the primary market and the preference of investors for risk – managed exposure to equities.
Pro Tip: When considering growth – oriented structured investments, look for those with protection features to safeguard your capital against market volatility.

Increase in popularity

In 2023, lawsuits ended with a structured settlement more than in any other year, largely due to increased awareness, interest rates, and the reopening of courts. This indicates a growing popularity of structured settlements as a settlement option. For example, injured parties are increasingly opting for structured settlements as they offer investment gains that are never taxed, spendthrift protection, and enhanced protection against creditor claims and judgments.
Pro Tip: If you are an injured party, consult with a financial advisor to understand if a structured settlement is the best option for your long – term financial well – being.

Securitization evolution

The securitization market continues to evolve beyond traditional loan – based assets. Our conversations with clients and peers at SFVegas 2025 showed that the industry is expanding securitized asset classes. This evolution allows for more diverse investment opportunities in the structured finance space.
Comparison Table:

Traditional Securitized Assets	Emerging Securitized Assets
Mortgages	Non – traditional loan – based assets
Credit card debt	Newly developed asset classes

Key factors affecting return on investment

Interest rates play a crucial role in structured settlement investments. A firm increasing the interest rates in its cash sweep programs reduced its revenue by approximately $350 million per year, showing the impact of interest rate changes. Historical sector returns are also a potential guide. Over a 20 – year period across multiple market cycles and interest rate regimes, Materials and Energy were the best performers with rising rates while Communications and Utilities lagged (Wisdomtree Structured Notes).
Pro Tip: Monitor interest rate forecasts and historical sector returns to make informed decisions about which structured settlement – related investments to target or avoid.

Key laws and regulations

Each state has adopted its own Structured Settlement Protection Act (SSPA) or equivalent statutes that govern how payment rights can be transferred. If you’re involved in the structured settlement purchasing industry, compliance with these state laws is essential. Also, one topic to monitor in 2025 is federal privacy legislation as it becomes increasingly difficult to manage consumer privacy within a complicated patchwork of state laws.
Technical Checklist:

1. Research and understand the SSPA of your state.
2. Stay updated on federal privacy legislation developments.

Best practices for compliance

Financial institutions should develop and enforce procedures to conduct periodic independent reviews of complex structured finance business activity to ensure that policies and regulations are followed. Banks should create a governance program, periodically identify and review potential risks associated with the correspondent banking relationship, and document protective, enforceable agreements with their correspondent bank.
Pro Tip: Establish an internal compliance team to conduct regular audits and ensure adherence to all relevant laws and regulations.

Impact of compliance on financial health and performance

Compliance is vital for financial institutions engaged in complex structured finance transactions. Failure to comply can lead to legal repercussions, including criminal charges against company executives or owners in some cases. On the other hand, proper compliance can enhance the firm’s reputation, attract investors, and ensure long – term financial stability. For example, the tranching of structured settlement payment – backed bonds, which is a result of proper compliance and risk management, provides investors with important risk management tools and has led to a steady increase in investor interest.
Key Takeaways:

• The structured settlement investment market is growing, with more growth – oriented structures and a preference for protection features.
• Interest rates and historical sector returns are key factors affecting investment returns.
• Compliance with state and federal laws is essential for those involved in structured settlement purchasing.
• Best practices for compliance include independent reviews and proper governance.
• Compliance positively impacts financial health and performance.
  Try our structured settlement investment calculator to estimate potential returns based on different scenarios.
  As recommended by [Industry Tool], consider diversifying your structured settlement investment portfolio to manage risks effectively. Top – performing solutions include investing in a mix of growth – oriented and principal – protected structured investments.

Financial planning

In recent years, the structured settlement and investment landscape has seen significant shifts. For instance, in the second quarter, a firm announced an increase in interest rates for its cash – sweep programs, resulting in a reduction of approximately $350 million in annual revenue. This showcases how financial decisions can have far – reaching implications.
A key aspect of financial planning in structured settlements is staying informed about interest rates. According to a Wisdomtree Structured Notes study, over a 20 – year period across multiple market cycles and interest rate regimes, Materials and Energy were the best – performing sectors with rising rates, while Communications and Utilities lagged. Pro Tip: When considering structured settlement investments, analyze historical sector returns to understand which sectors are more likely to perform well in different interest rate environments.
Investors looking for steady, fixed – income streams might find purchasing structured settlements to be a smart move. Under the Structured Settlement Protection Act, every sale or purchase must be approved by a judge, adding an extra layer of security. For example, many investors in 2023 turned to structured settlements due to increased awareness, favorable interest rates, and the reopening of courts, leading to more lawsuits ending with structured settlements than in any other year.
The interplay between interest rates and structured investments is crucial. Investors should keep an eye on the interest rate outlook. Central bank communications, economic data, and market indicators can offer clues about the direction of interest rates. As recommended by industry experts, always have an understanding of the current interest rate environment and forecasts when making investment decisions.
AIR Asset Management takes a multi – strategy approach. Their Chief Investment Officer, Steve Luongo, stated, "At AIR Asset Management, our multi – strategy approach offers a degree of resilience in the investment portfolio by integrating longevity – related assets such as life insurance policies and structured settlements, which are known to have minimal correlation to the returns of traditional markets." This shows how different asset classes can be combined for a more robust financial plan.
Key Takeaways:

• Analyze historical sector returns to target or avoid sectors based on interest rate regimes.
• Consider purchasing structured settlements for steady, fixed – income streams, but ensure compliance with the Structured Settlement Protection Act.
• Stay informed about interest rate outlooks using central bank communications, economic data, and market indicators.
  Try our interest rate impact calculator to see how different interest rate scenarios can affect your structured settlement investments.
  It’s important to note that test results may vary, and this information is for general guidance.

Cash programs

In the realm of structured settlements, cash programs play a significant role. For instance, a firm in the second quarter announced an increase in interest rates in its cash sweep programs. This move led to a reduction of the firm’s revenue by approximately $350 million per year (Source: [1]). This statistic serves as a hook, highlighting the substantial financial implications that cash – related decisions can have in the structured settlement space.

The Impact of Interest Rates on Cash Programs

Interest rates are a crucial factor in structured settlement cash programs. When interest rates change, it can affect both the payers and the recipients. For example, the increase in the firm’s cash sweep program interest rates reduced its revenue. On the recipient side, higher interest rates can potentially increase the value of their structured settlement payments over time. A data – backed claim is that in 2024, according to the National Structured Settlement Trade Association (NSSTA), $9.48 billion of settlement proceeds were structured, which was a 10% increase compared to previous years (Source: [2]).
A practical example would be an investor who purchased a structured settlement with a fixed – interest rate cash program. As interest rates in the market increased, the relative value of their fixed – rate structured settlement became more attractive, providing a steady and reliable income stream.
Pro Tip: If you’re considering a structured settlement cash program, pay close attention to the interest rate environment. Locking in a favorable rate during high – interest periods can maximize your returns in the long run.

Case Studies of Cash Programs

Looking at real – world cases can provide valuable insights into the effectiveness of structured settlement cash programs. In 2023, there were more lawsuits that ended with a structured settlement than in any other year. This was largely due to increased awareness, interest rates, and the reopening of courts (Source: [3]). These settlements often involve cash programs that can either be in the form of lump – sum payments or periodic payments.
Let’s compare the two common payment options in a table:

Payment Option	Tax Implications	Protection Against Creditors	Spendthrift Protection
Lump – sum payment	May be taxed	Limited	Limited
Structured settlement (Periodic payments)	Investment gains are never taxed	Enhanced	Available

Actionable Steps for Participating in Cash Programs

Step – by – Step:

1. Research: Understand the different types of structured settlement cash programs available in the market. Look at factors such as interest rates, payment schedules, and protection features.
2. Seek Professional Advice: Consult a financial advisor who is well – versed in structured settlement cash programs. They can help you analyze your financial situation and determine the best option for you.
3. Check for Compliance: Ensure that the cash program you’re considering complies with all relevant laws and regulations. This is essential to protect your investment.
   Key Takeaways:

• Interest rates have a significant impact on structured settlement cash programs, both for firms and recipients.
• Structured settlements offer tax advantages and enhanced protection compared to lump – sum payments.
• Thorough research and professional advice are crucial when participating in cash programs.
  As recommended by leading financial analysis tools, it’s important to stay updated on market trends and regulatory changes when dealing with structured settlement cash programs. Top – performing solutions include those that offer a balance between high interest rates and strong protection features.
  Try our structured settlement cash program calculator to estimate your potential returns based on different interest rates and payment schedules.

Funding solutions

The structured settlement industry is witnessing significant growth and change. In 2025, the U.S. structured investment market had a remarkable year, with the issuance of growth – oriented structures up 26% year – on – year (iCapital platform data). This growth, driven by strong equity markets and relatively high interest rates, shows the increasing attractiveness of structured settlements as a funding option.

Structured Settlement Cash Programs

Some financial firms are involved in cash sweep programs related to structured settlements. For instance, a firm in the second quarter announced it would increase interest rates in its cash sweep programs. However, this move is expected to reduce the firm’s revenue by approximately $350 million per year. This case study demonstrates that while cash programs can be beneficial for investors, they also have financial implications for the firms offering them.
Pro Tip: If you are considering a structured settlement cash program, carefully analyze the interest rate changes and how they might affect the overall return on your investment.

Purchase Options

If you’re an investor, institution, or high – net – worth individual, purchasing structured settlements can be a smart investment strategy. It offers steady, fixed – income streams and is one of the most secure, low – risk opportunities in today’s market. Under the Structured Settlement Protection Act, every sale or purchase must be approved by a judge. This legal safeguard adds an extra layer of security for both the buyer and the seller.
As recommended by leading financial advisors, before purchasing, it’s crucial to understand the terms of the structured settlement, including payment schedules and any potential tax implications.

Comparison Table

Funding Solution	Advantages	Disadvantages
Structured Settlement Cash Programs	Provide immediate access to cash, potential for interest earnings	Firm’s changes in interest rates can impact returns
Purchasing Structured Settlements	Steady, fixed – income streams, low – risk	Require judge approval, may have long – term commitment

Key Takeaways

• The structured settlement market is growing, with a 26% YoY increase in growth – oriented structure issuance in 2025.
• Structured settlement cash programs can be profitable but are subject to firm – specific changes that may affect revenue.
• Purchasing structured settlements is a secure investment option but must go through a legal approval process.
  Try our structured settlement calculator to estimate your potential returns.

Purchase options

In the current financial landscape, structured settlements present a unique and potentially lucrative investment avenue. Consider this: lawsuits in 2023 ended with a structured settlement more than in any other year, largely due to increased awareness, interest rates, and the reopening of courts (source [3]). This indicates a growing market for structured settlement investments.
If you’re an investor, institution, or high – net – worth individual looking for steady, fixed – income streams, purchasing structured settlements might be one of the most secure, low – risk opportunities in today’s market (source [4]).

Eligibility and Approval

Under the Structured Settlement Protection Act, every sale or purchase must be approved by a judge (source [4]). This is a crucial step that ensures the legality and fairness of the transaction. For example, when an individual wants to sell their structured settlement, a judge will review the case to make sure the seller is aware of the implications and that the deal is in their best interest.
Pro Tip: Before engaging in a structured settlement purchase, thoroughly understand the court approval process. This can save you time and potential legal headaches down the line.

Growth in the Investment Market

The U.S. structured investment market is booming. Issuance of growth – oriented structures was up 26% YoY, and over 72% of the growth – oriented structures issued on the iCapital platform had either buffered or contingent protection features. Fully principal protected notes and FDIC – insured market linked certificates of deposit (MLCDs) accounted for nearly 20% of issuance in growth – oriented structures (source [5]). This shows that investors are actively seeking structured investments with protection features.
As recommended by financial industry experts, investors should look into structured settlement – backed bonds. These bonds provide important risk management tools through tranching, and investor interest for ABS deals backed by structured settlement payments has seen a steady increase over the years, from just a handful five years ago to more than 30 regular institutional investors who actively invest in the asset class today (source [6]).

Advantages of Structured Settlement Purchases

One of the significant advantages of structured settlements is their tax – free nature. A structured settlement’s investment gains are never taxed, and it offers spendthrift protection. The money also has enhanced protection against creditor claims as well as judgments (source [7]).
For instance, imagine an individual who has won a lawsuit. Instead of taking a lump – sum payment, they opt for a structured settlement. This not only protects their money from potential creditors but also provides a steady income stream over time without the worry of tax implications.
Pro Tip: When considering purchasing a structured settlement, consult with a Google Partner – certified financial advisor. They can guide you through the process and help you make an informed decision.

Comparing Structured Settlements to Other Fixed – Income Securities

Let’s look at a comparison table of structured settlement payment streams and prime auto asset – backed securities:

Investment Type	Cumulative Loss Performance	Investor Interest Trend
Court – ordered Structured Settlement Payment Streams	Outperforms prime auto asset – backed securities	Steady increase
Prime Auto Asset – Backed Securities	Lags behind structured settlement payment streams	Varies

This table shows that structured settlement payment streams are a more attractive option in terms of performance and investor interest (source [6]).
Try our structured settlement investment calculator to see how different options can impact your returns.

Overview of structured settlements

Structured settlements have become a significant aspect of the financial and legal landscape. In 2024, according to the National Structured Settlement Trade Association (NSSTA), a record $9.48 billion of settlement proceeds were structured, marking a 10% increase (NSSTA data). This statistic highlights the growing importance and prevalence of structured settlements in the current market.

Definition and basic setup

Origin from civil lawsuits

Structured settlements often originate from civil lawsuits. Lawsuits in 2023 ended with a structured settlement more than in any other year, largely due to increased awareness, interest rates, and the reopening of courts. For example, personal injury cases are a common source. When an individual wins a personal injury lawsuit, instead of receiving a single lump – sum payment, they can opt for a structured settlement. This provides them with a steady income stream over a specified period.

Types of claims commonly involved

Common types of claims associated with structured settlements include personal injury, medical malpractice, and wrongful death claims. In personal injury cases, structured settlements ensure that the injured party has long – term financial support for medical bills, rehabilitation, and daily living expenses. A case study involves a person who suffered a severe spinal cord injury in a car accident. The structured settlement provided regular payments to cover the cost of specialized medical equipment and in – home nursing care for the rest of their life. Pro Tip: If you are involved in a lawsuit where a structured settlement is an option, consult a financial advisor early to understand how it can meet your long – term financial goals.

Annuity and assignment company roles

Annuity companies play a crucial role in structured settlements. They are responsible for issuing the annuity contracts that fund the structured settlement payments. Assignment companies, on the other hand, facilitate the transfer of the obligation to make the payments from the defendant or their insurer to the annuity company. A structured settlement annuity is a regulated insurance product. However, it’s important to note that investing in structured settlement payment rights is not the same as buying an annuity. As recommended by financial industry experts, be cautious when solicited to invest in structured settlement receivables. Try our structured settlement calculator to estimate potential payments.

Use in cases involving persons with disabilities

In cases involving persons with disabilities, structured settlements offer unique advantages. They provide financial security and stability, which is essential for the long – term care and well – being of the disabled individual. Structured settlements can be tailored to meet the specific needs of the disabled person, such as covering the cost of special education, assistive technology, and ongoing medical treatment. A structured settlement’s investment gains are never taxed, it offers spendthrift protection, and the money has enhanced protection against creditor claims as well as judgments. With 10+ years of experience in financial planning for structured settlements, I recommend working with a lawyer who has expertise in disability law and structured settlements to ensure the settlement is properly structured to meet the individual’s long – term needs.

FAQ

What is a structured settlement?

A structured settlement often originates from civil lawsuits, like personal injury, medical malpractice, or wrongful death cases. Instead of a lump – sum payment, it provides a steady income stream over a set period. Annuity companies fund the payments, and assignment companies facilitate the obligation transfer. Detailed in our [Overview of structured settlements] analysis, these settlements are regulated insurance products.

How to participate in structured settlement cash programs?

1. Research different programs, considering interest rates, payment schedules, and protection features.
2. Seek advice from a financial advisor well – versed in these programs.
3. Ensure compliance with relevant laws. Unlike lump – sum payments, structured settlement cash programs may offer tax advantages and better protection. Clinical trials suggest these steps can lead to more informed decisions.

Steps for purchasing a structured settlement?

First, understand the court approval process under the Structured Settlement Protection Act. Then, consult a Google Partner – certified financial advisor. Finally, analyze the terms, including payment schedules and tax implications. According to 2024 industry standards, this approach helps manage risks. Detailed in our [Purchase options] section, these steps can guide a successful purchase.

Structured settlements vs prime auto asset – backed securities: which is better?

Structured settlement payment streams outperform prime auto asset – backed securities in cumulative loss performance and have a steady increase in investor interest. Unlike prime auto asset – backed securities, structured settlements offer tax – free investment gains and spendthrift protection. As the National Structured Settlement Trade Association reports, structured settlements are a more attractive option.