Should I Take a Lump Sum or Structured Settlement?

Should I Take a Lump Sum or Structured Settlement?


If you suffer a personal injury due to the actions of someone else or a corporation, you’re may file a lawsuit. The purpose of that case is to seek compensation. When you win the lawsuit, you’ll receive payment in two ways. This can be either in a lump sum or periodically as a structured settlement. Although both are standard, they have pros and cons that you should consider.

Check out their advantages and risks to make an informed choice.

Advantages and Risks of Structured Settlements

In a structured settlement you receive your payments periodically over time. It comes from an annuity that the defendant purchases from a life insurance company in the lawsuit. Such periodic payments enable you to know exactly when you are going to receive your future payments. 

Additionally, structured settlements are not flexible as you cannot change them once they are put in place. For instance, you create a payment structure that supports your ongoing long-term needs and that schedule cannot be changed in almost all cases. Also, a structured settlement protects you from the consequences of losing the full settlement amount by way of bad investment or spending.

Unfortunately, a structured settlement has its risk. Such as, you can’t be able to pay unexpected bills because it’s not possible to change the payment structure. Therefore, please search for a reputable company such as We Pay More Funding should you need to sell your structured settlement for a lump sum.

Turning Structured Settlements into a Lump Sum

Usually, life comes with unexpected situations that require money. You might need more cash than your settlement pays, even when you have a structured settlement. When that happens, you may ask, “how do I sell my structured settlement ?”. To achieve this, you must search for a company that specializes in buying structured settlements. The company will consider different factors and give you cash in exchange for your future payment rights.

Advantages and Risks of a Lump Sum

Lump sum is a single payment whereby you receive all your money at once. Lump sums allows you to spend the money however and whenever you like. For example, you can pay your immediate or future unexpected costs with a lump sum. And since it will be a larger amount, you’ll be able to manage and finance larger investments should you want to.

Among the risks associated with lumps is a lack of a second chance. You will have no opportunity to redeem yourself if you lose the money. Also, if your investments fail, you’ll have lost all your funds. And if you haven’t handled a large influx of cash, it could be hard for you to manage in a responsible way. 


Getting fair compensation is vital in a lawsuit. Notably, the mode of payment you choose is essential. Remember, your goal is to indemnify your loss caused by the harm. Therefore, consider your long-term and short-term needs when selecting between lump sum and structured settlement payment to ensure you set yourself up to be in a comfortable financial position.