No, structured settlements periodic payments are being used in wide variety of cases apart from settling personal injury claims such as:
Claims for personal injury to children: The structured settlements are becoming popular with the settlement of claims for children who have suffered in injury in an accident or due to medical negligence. In case of the involvement of a child in the personal injury loss the total compensation amount for him could be carried forward to the succeeding years in installments, need for a stable and guaranteed constant flow of income for some time etc. to fund the educational, medical and other needs of the child.
Employment Benefits : There are many occurrences of losses to the workers in a factory or an industry where the worker gets severe physical injuries. The law guarantees right to compensation to these workers. If he opts for a structured settlement, he may continue to receive periodic payments along with the social security benefits in the long run and all of it would be free of taxes. Discrimination, harassment, and other kinds of employment claims are also good candidates for structured settlements but they are non-qualified settlements because these don’t fall under the cases of physical injury thus the compensation will be taxable.
Divorce and Alimony : Structured Settlements have gradually become popular in matters of divorce and alimony money. For instance, a couple gets divorced and the husband is due to pay alimony so the wife may opt for a structured settlement in order to receive the whole amount periodically as the child gets older, rather than taking it all as a lump-sum.
Property Loss Claims : Periodic payments are used to settle claims of groups of home owners or people seeking compensation for defects in the constructions they had invested in. Periodic payments can be scheduled in fixed intervals of time according to the schedule for conducting repairs in the constructed building.
Environmental and Pollution Claim : Structured settlements spring up when it has been established that pollution liability exists and future costs can be funded with a structured settlement annuity offered by a life insurance company. The defendant party can pay for the clean-up costs in structured installments.
So one can see, structured settlements are not just limited to cases which may involve physical injury to you. It is used in wide variety of cases.