Many people who have had some sort of debilitating accident end up receiving a monetary settlement through either an insurance claim or a civil court case. This is a common occurrence as the individual that has been harmed will look to their insurance company for relief, or if they feel they were harmed in a negligent way, they will sue the other party for suffering.
Once the legal or insurance settlement phase is complete the next step is the structuring of the payment. Most people think of an award of that nature being paid in one lump sum. However, a growing form of payment is called a structured settlement.
The idea behind this system of payment is that individuals who have been injured, and will need on-going medical support must have a regular and safe income stream to pay for those services. No longer is there the risk of poor financial management and the possibility of losing the money. In addition, often there can be pressure from family members to share the funds, which is not what they are needed for.
Structured Settlements also can be used for large financial windfalls such as a lottery winning or other monetary prize. This allows the payee the benefit of not having to part with the money at all once.
Regular, contractual payments are a growing, and popular method of disbursement.