Structured Settlements do come with a slight element of risk. In case the life insurance company goes bankrupt, the claimant would not be able to receive further payments in installments fro that company. Hence, secondary guarantees are put in place to ensure stream of income to claimant if the primary company goes out of business. But generally, the insurance company backing this stream of annuities is generally highly rated by the credit rating agencies so agreeing to a structured settlement obviously has a negligible risk. This makes these structured settlements secure and safe due to almost negligible risk.