Advantages Of Choosing A Structured Settlement
When you have a strong personal injury case and the other party wishes to settle with you, your personal injury lawyer will likely discuss a lump sump payment or a structured settlement. The former scenario involves you getting the entire amount of damages in a single payment, while the latter involves regularly occurring payments over a period of time. You might immediately lean toward getting a lump sum, given the excitement over suddenly having a lot of money in your bank account. However, there are lots of advantages of choosing a structured settlement. Here are some examples.
You'll Find Comfort In Regular Payments
There's a degree of comfort in knowing that you're getting regular payments. This is especially true if you're not able to work because of your injury. A lump sum can be appealing, but there's a certain concern over knowing that more money isn't coming in your future. With a structured settlement, you may find that it's easier to budget. You know what you're getting every month and can adjust your expenses and overall lifestyle accordingly.
There's Less Risk Of Recklessness
It can be tempting to be reckless when you get a large sum of money, and this may be your reality after you get a lump sum payment. You may rationalize that you've been through a lot, and now it's time to treat yourself. This may be true, but too much of this attitude could lead to financial problems down the road. A large amount of money may seem like more than you could ever spend, but if you start to make big purchases, you'll see this amount begin to dwindle. Plenty of people who have come into a significant amount of money have found themselves bankrupt or otherwise struggling financially in the future because of mismanagement, and you don't want this to be your reality.
You May Get More
The other party's attorneys may pitch an idea wherein the lump sum payment that you receive is actually less than what you'd get over the course of the structured settlement. The mentality behind this approach is that many people will go for the lump sum, which means that the other party has to pay less in the long run. Be sure that you know the financial details of both offers. If you'd make more money with the structured settlement in the long run, this may be the better route to take.