637 / Why might the parties to a judgment prefer to use a structured settlement rather than a lump sum payment?

The parties to a lawsuit have substantial flexibility in composing the terms of a structured settlement. In some cases, a structured settlement may be paid in equal installments over a set period of time, while in other cases a larger up-front payment is made, followed by smaller payments over time. The parties can structure a settlement so that it includes a guaranteed number of payments (which may be preferable to ensure that the plaintiff’s heirs are entitled to continue to receive payments should the plaintiff die) or so that it includes payments for the life of the plaintiff.