A structured settlement is an arrangement by which a personal injury claim or payment obligation is resolved by providing structured periodic payments to the claimant. These payments may be referred to as “structured settlement payments” or “periodic payments.”

This system was first utilized in the U.S. and Canada in the 1970s as an alternative to lump sum payments. Other common law countries such as England and Australia now incorporate structured settlements into their legal system. The basic foundation of the system is the same across these countries, though it is important to note that each country has its own specific structured settlement definitions, rules, and standards.