Decisions…decisions.
When settling a legal case, you may be presented with the option to choose between a lump-sum payment or a structured settlement. Each option has its unique advantages, but how do you determine which is best for your situation?
Advantages of Lump-Sum Payments.
Lump-sum payments are attractive because they offer immediate access to a large amount of money. If you have pressing financial needs, such as paying off debts, buying a home, or making significant investments, a lump-sum payment might be the right choice. As the money is available all at once, managing a large influx of funds requires discipline to manage the funds properly.
Structured Settlements.
On the other hand, structured settlements provide a long-term income stream, which can offer greater stability and security. By spreading out payments over time, you can avoid the risk of overspending and ensure that you will have money available for future needs. Structured settlements are especially beneficial for individuals who require regular income to cover ongoing medical expenses, living costs, or other long-term obligations. They also come with tax benefits, as the payments are typically tax-free.
Still Unsure?
If you’re unsure which option is right for you, feel free to contact us for no-cost advice on the pros and cons of both choices and how they align with your financial goals.
– Parmelee Brothers
