If you are offered a structured settlement lump sum for your case, you may wonder if you should accept it. Lump sum payments are usually preferred over a structured settlement if you are involved in an injury case, but there can be individual exceptions.
Many settlements when there is a personal injury case will be a lump sum payment. This payment means that the defendant will make a single payment to you and that will be what settles the case. In some cases, plaintiffs will decide that they would rather have the compensation in the form of a structured settlement. This is when a portion or all of the agreement is paid throughout the years. A portion will often be paid to the plaintiff along with their lawyer right after the settlement in the form of a lump sum; then the rest is structured over several years.
How Structured Settlements Work
When you and a defendant agree on payment with a structured settlement, the insurance company of the defendant will transfer a portion of the settlement to another insurer. This will often time be an insurance company that specializes in these structured settlements. You need to be sure that the company paying out the money over the years is rated highly. If they fail or they declare bankruptcy, your structured settlement will also be gone with it. This means that you will have a slight amount of risk with this form of payment.
What Is A Structured Settlement Lump Sum?
The simple fact that you get a lump sum of money immediately is the main advantage that comes from opting for a lump sum settlement. Whenever you need to have a large number of funds to pay off bills, it is a good idea to go with the lump sum up front. You can also use the money for other significant investments, such as starting a business, buying a home, paying for education, and more. However, if you find that the settlement is just not all that large, you are not going to have any significant advantage from getting the lump sum.
Lump sum settlements are a traditional way of settling different cases. You will get a check from the defendant, and you cash the check, which simply means that the case is over. Many people will go for a settlement payment that comes over some time because that way, they will not be spending too much money too fast. When you do know that you need the funds sooner, then you will be best off working with the right company to help you get it done.
At We Pay More Funding, we will give you all of the professional advice that you need when it comes to a structured settlement lump sum and all that it involves. Whether you end up choosing to go with a structured settlement or a lump sum payment, we can help you to make sure that you get the funding that you need quickly. All you have to do is get in touch with us to go over the details, and a member of our team will list all of the pros and cons of either situation and what we can do for you.