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Structured settlements are a method of compensating injury victims. Recognized and encouraged by the U.S. Congress since 1982, a structured settlement is a voluntary agreement between the injury victim and the defendant.

Under a structured settlement, an injury victim doesn't receive compensation for his or her injuries in one lump sum. Rather, he will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs.

A structured settlement may be agreed to privately (for example, in a pre-trial settlement) or it may be required by a court order, which often happens in judgments involving minors.

Structured settlements can be exceptionally flexible and can be designed for virtually any set of needs. A relatively simple payment schedule can be set up that provides for equal payments at pre-agreed upon, set time intervals. An annuity has been the preferred way of funding because of its pricing and flexibility.

• Structured settlements information

• en.wikipedia.org/wiki/Structured_settlement

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