Structured settlements were developed because of the many pitfalls that were associated with the traditional way of compensating a victim in the form of a lump sum amount -especially in cases involving serious personal injury cases. There were many instances where a lump sum amount that was supposed to last for many years (or even a victim's lifetime) was fully depleted prematurely. In such cases, the injured individuals had to be supported and cared for using one or more of the taxpayer funded health and human services programs such as Medicaid or Medicare.

Structured settlements have been created to prevent the above. They not only provide long-term financial security for the injured, they also empower the recipients by making available to them a steady/dependable source of revenue for meeting their ongoing medical and living expenses -without burdening any of the taxpayer funded programs.

Structured payment plans offer many benefits for both -the Injured Person (i.e. the Recipient), as well as for the Defendant (i.e. the Payee). They are most likely to be used in cases involving victims in need of long-term medical care, living expenses and support of the victims and/or their families. They are almost always used in cases involving serious Personal injuries, Plaintiff's with temporary or permanent disabilities, Wrongful death cases, Guardianship cases involving minors, Guardianship cases involving individuals that are incompetent, and cases involving Workers' compensation related matters.

Most importantly, structured payments provide long term financial security and peace of mind for the Injured. Furthermore, considering that all structured settlements are assured by a highly rated, reputable, and government regulated financial institution, the claimant faces significantly lower risks.

They also significantly minimize the risk of someone mismanaging a large cash lump sum payment and jeopardizing the long-term fiscal well being of the injured party.

For The Injured Party, Structured payments offer:

• Payments specially tailored to the injured party's specific needs
  
• Terms of payment (amount, frequency and the duration) that reflect the claimant's immediate and long-term financial needs
  
• A stable and reliable revenue stream, and
  
• Tax benefits for the claimant

For the Defendants, Structured settlement plans provide several benefits as well. They not only lead to faster settlements and reduced cost of litigation, they also provide one of the most cost-effective ways to guard against unpredictable (costly) jury trials.