: Both parties agree to a payment plan during settlement talks.

: A judge often must approve the agreement to ensure it is in the recipient's best interest.

: The defendant pays a premium to an insurance company, which then issues an annuity to fund the future payments.

: The claimant receives payments on a fixed schedule—monthly, annually, or as milestone lump sums (e.g., for college tuition). Key Benefits What Is a Structured Settlement? - WSJ