Periodic Payment Agreement

Learn more about our Periodic Payment Agreement (PPA).

What is a Periodic Payment Agreement?

The Periodic Payment Agreement (PPA) product is designed to accept the transfer of a periodic payment obligation of certain personal injury cases that are not eligible for an IRC Section 130 qualified assignment.

Potential Uses

There are two versions of the PPA designed to solve the needs of different situations:

PPA-Contingent: For use when the carrier or employer must remain contingently liable, as required in certain states for Worker’s Compensation cases (e.g., Texas)
PPA-Release: For use when the carrier, employer or defendant can be fully released of the periodic payment obligation
Pre-1997 Worker’s Compensation
Individual Disability
Wrongful Imprisonment (where there has been no physical injury)
The PPA can also be used for Attorney Fees, including Stand-Alone Attorney Fees, which can be life-contingent, in conjunction with the PPA-Release

Potential Advantages

For the Claimant/Payee

Guaranteed payments for life¹
A financial planning opportunity with scheduled payments
Income spread and corresponding spread of tax obligation²

For the Defendant/Purchaser

Transfer of mortality and investment risk
Reduced administrative burdens associated with issuing periodic payments
Additional flexibility afforded via available commutation endorsements
Substandard Underwriting available

Required Documents

Settlement Agreement and Release, if applicable
Transfer Letter, for Replacement of Benefits cases only
Periodic Payment Agreement (PPA) or Periodic Payment Agreement and Release (PPAR) • Fully Completed Application
Proof of birth, if payments are life-contingent
W-9 and W-4P Tax forms, for Attorney Fees
Hold Harmless, for Attorney Fees
Court order, if applicable

Our Advantage

Simple and Easy

Our superior service makes it easier for you to do business.
The settlement solution is tailored to meet the claimant’s specific needs for payments.

Expertise

Work with a dedicated team of industry specialists.
The MetLife family of companies have a 150-year history of navigating changing market conditions.

Trustworthy

We are committed to the structured settlement market.
Our company’s financial strength is consistently rated highly by major rating agencies.³

Metropolitan Tower Life Insurance Company

Metropolitan Tower Life Insurance Company (Met Tower Life), is a Nebraska-based company, and is a wholly owned operating subsidiary of MetLife, Inc. Met Tower Life is the annuity issuer and the assignment company will be MetLife Assignment Company Inc. (MACI). The obligations of MACI will be guaranteed by Met Tower Life under an Evidence of Guarantee.

^1. All guarantees are subject to the financial strength and claims-paying ability of Metropolitan Tower Life Insurance Company.

^2. Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. Met Tower Life, its agents and representatives may not give legal, tax or accounting advice and this document should not be construed as such. You should confer with your qualified legal, tax and accounting advisors as appropriate.

Attorneys will generally need to have a fee arrangement in place at the time of settlement which provides for the structuring of payments solely from
the claimant’s settlement proceeds. Structuring of attorney fees could have important legal and tax consequences. Attorneys should consult with their
own tax and legal advisors prior to agreeing to structure legal fees to determine the tax and other legal consequences. The method of tax reporting with respect to such fees is subject to change, where we deem such change to be required under the Federal tax law or IRS guidance.