All the structured settlement agreements have an IRR or Internal Rate of Return number attached to them. It is shown as the percentage return. Basically it this allows the person to compare and find an interest rate that is equivalent to the returns on the amount of premium used to fund the structured settlement. Once the rate is known, it can be compared to the rates after accounting for the taxes which can be earned on other alternative forms of the structured settlement plans or by investing in different financial instruments like the certificate of deposit or treasury bills etc. IRR is useful to determine the best value for money keeping in mind the available resources, risk averse or risk-loving behavior of an individual amount of payments and other factors.
