A structured settlement involves non-taxable recoveries with periodic payments on specified due dates. Structured Settlements are available for the benefit of individuals and their families involved in personal physical injury disputes, and for workers' compensation claims as defined under IRC Section 104(a)(1) and (2). Clients will use a fixed annuity to meet their payments and to help maintain the tax-exempt treatment.
- The payments are income tax free to the claimant, which makes it an attractive alternative to investments with taxable income.
- Claimants avoid the investment issues associated with some other types of financial products.
- Payments can be tailored to meet the claimant’s individual needs, such as income replacement, lump-sum payments for special equipment, or college funds for dependent children.
John Hancock Structured Settlement Annuities began in 1999 with a vision of becoming a prominent carrier in this dynamic marketplace. Since then, the unit has established a powerful market share. The division’s success is due to several factors, including:
- A rigorous analytical process
- A profound understanding of markets and clients
- Creative and innovative product structures
This rigorous analytical approach has been a key factor to providing innovative solutions for clients. The approach combines risk management skills with the use of immunization strategies for asset/liability management and strengthens our ability to provide a variety of guarantees1. Currently, we have more than 125 asset and liability management professionals.
Our tenured professionals also employ their sophisticated knowledge of the marketplace and comprehensive understanding of customer needs. For this reason, we are able to tailor structures in a number of ways to fit client objectives. The expertise of our staff, combined with the quality and accuracy of our technology-based modeling tools, is fundamental to the level of customization that we can offer clients.