Over 90 percent of structured settlement annuity recipients reported feeling financially secure when they chose structured settlements as monthly annuity payments rather than a lump sum, according to MetLife’s new 2025 Personal Injury Settlement Study.

“The decision for personal injury settlement recipients to accept their settlement as either a single lump sum payment or as a structured settlement annuity can have a significant impact on their financial future. As a result, these individuals should seriously consider the benefits offered by a structured settlement annuity and the security that can offer,” says Bejan Shirvani, vice president, Structured Settlements with MetLife. “With more than three-quarters of the personal injury settlement recipients we surveyed reporting serious or severe injuries (76 percent), this underscores the need for financial certainty, especially considering the associated medical bills, potential lost wages and reduced earnings capacity they may experience.”

Annuity Payments vs. Lump Sums

The survey findings are further supported by the fact that nearly three-quarters, 72 percent, of settlement recipients who took a lump sum said their budget would be easier to manage if they had instead chosen monthly annuity payments.

Nearly eight in 10 of structured settlement annuity recipients, 79 percent, report that their standard of living has improved since receiving their guaranteed annuity payments from their settlement. This includes three in 10 (30 percent) who say it is much better. Similarly, 76 percent feel more confident in their financial decisions.

Spending-wise, 45 percent of lump sum recipients typically spend their money on paying down debt within the first year of receiving their lump sum and 41 percent spend their funds on medical and/or long-term care expenses. For ongoing expenses, recipients spend on daily expenses, debt and medical and/or long-term care.

Spending Habits and Regrets

Some respondents with lump sum settlements purchased a new vehicle (39 percent), home improvements/repairs (29 percent), and vacations (18 percent). However, the study found that almost half of lump sum recipients who made a significant purchase within the first year, 49 percent, express regret regarding their expenditure.

Lump sum recipients had more feelings of uncertainty when thinking about the future.

Despite most feeling they have enough money remaining for the basics, 51 percent said they are cutting back on spending due to fears of running out of money.

The survey found that both groups would do things differently in hindsight.

At the time of settlement, with an average settlement amount of $324,148 among those surveyed, 43 percent took a full lump sum, 23 percent took a full annuity, and 34 percent took a partial settlement. Given what they know now, most say their ideal settlement would be a partial settlement – only 15 percent would choose a full lump sum.

“While some may believe that lump sums may offer more flexibility when it comes to how a personal injury victim uses their settlement, the lack of guardrails can lead to potential financial missteps and overspending, as demonstrated by the study’s findings,” said Shirvani. “Given the size and significance of these settlement amounts, personal injury victims and their advisors should give serious consideration to structured settlement annuities. This solution can help protect their financial future, allowing them to focus on their well-being rather than potential uncertainty and financial stress.”