by John Darer CLU ChFC MSSC CeFT RSP CLTC Updated March 5, 2026
A lot of the confusion comes from missing a basic point. A settlement is a compromise. And because a structured settlement is simply one form of that compromise, it isn’t something anyone “wins” or is “awarded.” So the language matters: you can’t win a structured settlement or be awarded one — but you can win with one. That’s the essence of a structured settlement compromise.
A Settlement is a Negotiated Compromise
A settlement agreement or compromise typically includes language in which the parties expressly agree that “this is a compromise of a doubtful and disputed claim and payment of the sums … shall not be construed as an admission of liability.” This is the foundation of every structured settlement compromise.
A Structured Settlement is Part of a Negotiated Compromise
Pretty basic stuff. Yet some of the structured settlement factoring company ads on the Internet and on TV talk about “winning a settlement” or being “awarded a settlement”.
- You can’t win a settlement.
- You can win a law suit
- You can win a ball game
- You can win a debate
But you can’t be awarded a settlement, or a structured settlement. That’s why understanding the structured settlement compromise matters.
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