Understanding the components of a structured settlement is the key to understanding how you will be paid and on what schedule.
While a structured settlement need only have one component, that which provides for the payout over the life of the structured settlement, most structured settlements have several different components, differing in the amount, the schedule you receive payment on, and the life of payout.
Understanding the components and how they work are very important in terms of maximizing your payout.
All structured settlements include one component that provides for a certain amount of money over the course of the payout. The payout terms are highly variable. Some structured settlements pay for the life of the plaintiff while other structured settlements only pay for a set number of years.
This is usually dependent upon the extent of the injury and what the judge and/or jury, depending on your jurisdiction, feel that the plaintiff is entitled to, based on the extent of the injury suffered.