Structured Settlements are binding legal agreements between two parties wherein one party agrees to make payments to the other party over a period of time. These settlements are often seen in personal injury accidents where the injured person (the plaintiff) agrees to accept annuity payments from the defendant's insurance company, and in return releases the defendant from liability. There is no set structure for these settlements as they are negotiated between the parties.

Lottery winners usually have a choice between a structured settlement or a lump sum payout. The lump sum amount is less than the total of the structured payments, due to the time value of money.

If you have a structured settlement you can sell it at a discount for a cash lump sum to various investment firms.