A structured settlement is an arrangement with an insurance company to make periodic payments in exchange for settling a personal injury claim. This type of compensation first appeared in the 1970’s as an alternative to lump sum settlements. They are now part of the statutory tort law of many countries, including the United States. These are sometimes called "periodic payments" and if awarded by a judge at the end of a trial, it is called a "periodic payment judgment".

Many people assume that bringing suit for pain, suffering and/or lost wages is a simple matter but it’s much more complicated than merely accusing another party and collecting an award. Juries must take into account a “reasonable” award; what is just and fair for one person’s pain and suffering may be grossly undervalued for another’s. Each case must be treated as a separate legal challenge; there can be no set amount to compensate for pain and suffering, as everyone has different thresholds of tolerance.