A settlement where the claimant receives payments over time instead of a lump sum is referred to as?

The correct answer is a structured settlement. This term specifically refers to an arrangement in which a claimant receives their compensation in regular payments over time rather than in a single lump sum. This type of settlement is often used in personal injury cases, workers' compensation, and other claims where long-term financial stability is desired.

Structured settlements can provide a steady stream of income, which can be particularly beneficial for claimants who need ongoing care or who may not be able to manage a large sum of money effectively. They can also have tax advantages, as certain structured settlements may not be subject to income tax.

In contrast, a lump sum settlement is the exact opposite, providing a one-time payment. The terms "deferred payment" and "installment agreement" are more general and can apply to various financial contexts outside of specific legal settlements. A structured settlement is distinct because it can include specific terms set by the court or involved parties, tailored to the claimant's needs.