A structured settlement can offer several advantages over a one-time, lump sum payout. With a structured settlement, the security of long-term income is guaranteed. If the victim is confined to a wheel chair or needs constant bed rest and nursing attention, a structured settlement can make certain that sufficient funds will be in hand to pay for the care. This allows the patient and/or their family to concentrate on health care without having to be overly concerned with the machinations of investing a lump-sum payment.

Structured Settlements allow income to be spread over time, which is safer than a lump sum payment. Studies have shown that some 30% of those who receive lump-sum payments as compensation for accident or injury spend the money within two months, and some 90% have spent the money within five years.