About Canadian Structured
Annuity Settlements

Generally a structured settlement is a financial or insurance arrangement, including periodic payments, that a claimant accepts to resolve a personal injury claim. Structured settlements are an alternative to lump sum settlements. Both term certain and life annuities in combination with or without a lump sum payment or payments may be used to satisfy the requirements of periodic payments over the lifetime of a claimant. With the authorization of CCRA and acceptance by the court, structured settlement benefits may include preferred income tax treatment. In other words, the benefit may be received by the claimant tax free.

Structured settlements are a win win situation for both parties in an injury claim. The income stream from an annuity can be designed to meet the individual needs of the Plaintiff. They can be indexed for inflation and provisions made for periodic lump sum payments in the future. The claimant gets more money over a longer period of time and the defendant pays out less than would be required by a lump sum settlement. A lump sum settlement results in the Court's allowance for a "tax gross-up" to reduce the impact of taxation on the future growth of that lump sum payment.

Most structured settlements are complicated arrangements requiring the specialized services of Annuity Brokers who limit their activities to this field. These brokers have expertise in dealing with the Canadian insurance industry, legal and tax system to provide the best service to their clients. Should you require specialized help in this area, e-mail me and I will endeavour to put you in touch with the proper specialists.

Copyright © 2001 - 2011 Annuity Broker Services
All rights reserved.
This web site designed & maintained by The Dogwood Mall