Although every structured settlement has a unique agreement on the structure of payments schedule between parties, yet some of common ways of distributing payments in a structured settlement include annual payments wherein the claimant receives a small sum per annum for a certain period of time. This is a good option for claimants who have some medical conditions that require monetary support each year. A larger lump sum every few years can be a good option for those who need to periodically purchase expensive medical equipment.
A structural settlement can be arranged for example, in the case of an injured child, the installments can be scheduled when the child will be entering college, moving out on his or her own, and then several times thereafter. It is possible to arrange structured settlements to pay the surviving family the remaining compensation amount of a deceased claimant.
The payments may vary according to individual needs. A young claimant should consider his medical needs later in life and post pone the receipt of his installments. On the other hand, an aged person will need more of their structured settlement at retirement. Claimants also consider important life events to provide for their financial requirements, such as higher education, marriage etc.