Which of the following describes a structured settlement?

A structured settlement is a financial arrangement that provides for periodic payments to a claimant rather than a single lump sum payment. This approach is often utilized in personal injury cases, workers' compensation claims, and other legal matters where a long-term financial solution is beneficial. By choosing a structured settlement, the claimant receives payments over time, which can help in managing expenses and ensuring a steady income stream.

The main advantage of this type of settlement is that it can provide stability and security for the recipient, especially if they are unable to manage a large sum of money effectively. This method can be tailored to meet the claimant's needs, ensuring that they receive payments for essential expenses such as medical care, living costs, or education.

In contrast, other options may describe different legal processes or arrangements that do not capture the essence of structured settlements, such as legal judgments or modifications requiring court intervention, which are not characteristic features of this specific type of settlement.