What is a structured settlement?

A structured settlement is a type of financial agreement in which a person who has suffered a personal injury due to the negligence of another (such as in a vehicular accident) receives periodic payments over a specified period of time instead of a lump sum payment. Structured settlements are often favored in Hawaii as they allow a person to receive compensation for their losses over an extended period of time, providing financial stability and security for those who have been injured and their families. A structured settlement is established by a court order or an agreement between the person who has been injured and the person who is responsible for the damages. The number and amount of payments, as well as the payment schedule, is determined in accordance with Hawaii law. In most cases, the payments are funded through an insurance company or other financial institution. Structured settlements are designed to provide a long-term financial solution for an injured person, allowing them to receive compensation for the medical expenses or other losses they have incurred. These settlements can also help an injured party set aside funds for future medical treatment if their condition worsens as the result of their injury. Additionally, structured settlements can protect against the risk of undercompensation due to mismanagement of a single lump sum.

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What is a structured settlement?

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