MetLife Launches Structured Installment Sale Solution in 49 States

NEW YORK--(BUSINESS WIRE)--MetLife, Inc. announced today the launch of its new Structured Installment Sale solution, available through its subsidiary, Metropolitan Tower Life Insurance Company. The solution is available in 49 statesⁱ, Puerto Rico and Washington, D.C.

Structured Installment Sales offer individuals the opportunity to defer their tax liability for eligible property sales, including small businesses as well as agricultural, residential and commercial properties. With an installment sale, the proceeds from the sale are paid out in installment payments over a pre-determined number of years rather than as a lump sum. As a result, the taxes are paid as the installment payments are received, rather than being paid at one time at the time of closing.

“We are excited to be entering this market with our new on-shore Structured Installment Sale solution and proud to be the first insurer to provide this type of offering,” said Mari Hioki, vice president, Structured Settlements at MetLife. “With more than 35 years’ experience in this space, MetLife is committed to providing financial security through structured solutions. Our history, expertise and financial strength position us well for the future as we expand in this market.”

Structured installment sales are designed for property sales that are eligible for the Installment Method under Internal Revenue Code Section 453. An installment sale must be agreed upon by all parties before the sale of the property— the buyer and seller agree to installment payments for a stated number of years as a condition of the sale. In addition, in a structured installment sale, the buyer and seller work with an insurance company. The buyer does not make periodic payments directly to the seller. Rather, the insurer’s assignment company makes the installment obligations over time.

“By pursuing a structured installment sale, sellers can protect their sales proceeds from market volatility by converting them into a guaranteed income stream,” said Hioki. “This helps provide financial security to the seller, preventing them from spending down the proceeds too quickly as well as doing so in a potentially tax efficient approach.”

MetLife’s new white paper, “Structuring an Installment Sale” takes a closer look at structured installment sales, discussing the conditions needed for a structured installment sale, IRS guidelines for this type of sale and steps to take to structure an installment sale.

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

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ⁱ Excluding New York