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A structured settlement is a financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving periodic payments on an agreed schedule rather than as a lump sum. purchaser of a structured settlement is an individual or company who buys a pre-existing structured settlement. Such settlements might include payouts for lottery winnings or annuities. For example, a court ordered structured settlement pays $5,000 a year for twenty years.
Distributions for a structured annuity are very flexible. The annuitant can request distribution payments as frequently as weekly, and can also request that payments be made in differing levels in anticipation of future financial needs such as medical equipment replacement or college expenses.t is important to remember that the plaintiff awarded damages cannot start a structured annuity. It must be requested that the party ordered to pay the awarded damages (usually an insurance company) do so on their behalf, either by mutual agreement or by court order.