Which of the following accurately describes the purpose of structured settlements?

Structured settlements are primarily designed to provide long-term financial support to individuals who have received a settlement from a workers' compensation claim or personal injury case. This approach allows for the distribution of settlement funds over time, rather than as a lump sum. As a result, individuals can have a steady income stream that can help them manage ongoing expenses related to their injuries, such as medical costs or rehabilitation.

In addition to offering long-term financial stability, structured settlements often come with potential tax benefits. The payments made as part of a structured settlement may be tax-free to the recipient, which can enhance the overall financial benefits of the settlement. This can be particularly advantageous for individuals who require ongoing support, ensuring they do not deplete their settlement funds too quickly.

While other options might seem plausible at first glance, they do not capture the primary intentions and benefits of structured settlements as effectively as the selected answer. For example, while providing incentives for employees to return to work faster is an aspect of workers' compensation systems, it is not the purpose of structured settlements. Similarly, ensuring immediate availability of funds addresses short-term needs rather than the long-term financial planning that structured settlements support. Lastly, covering legal fees is a separate legal obligation and not related to the primary function of structured