I think I answered this question before, perhaps under a different category.
The Structured Settlement Annuity is an arrangement whereby a company or individual that owes money to someone, perhaps as the result of losing a lawsuit, will pay that money out in monthly payments over an extended period of time, rather than pay it all at once in one lump sum.

For example, if someone sues a company for negligence and wins a monetary award for damages of $500,000, the company may ask whether the person would be willing to accept monthly payments over the next 10 years, rather than the $500,000 all at once right now.

If the person agrees, then the company will put it in writing and, every month, over the next 10 years, the person will receive from the company a monthly payment. Because the payments are deferred, it would be only fair to make the grand total of all payments equal to more than $500,000 because, after all, a person is entitled to earn some interest when he or she agrees to wait to receive the full amount owed.

You would sell a Structured Settlement Annuity on the basis that it's beneficial to both parties: the company making the payments, and the person receiving the payments.

The company does not have to sustain a major loss of cash all at once, if it can spread the payments out over time.

The person gets the benefit of receiving more than $500,000, because some interest will be added over the course of the 10 years of payments, for example. Also, there's a psychological benefit to having steady income in the form of monthly payments, rather than sustaining the shock and pressure of suddenly having to deal with a decision on how to invest a large sum like $500,000.