Understanding the Details: Structured Settlement vs. Lump Sum
Most people understand they’re entitled to a settlement after a personal injury accident in which they were hurt or incurred damages. However, most don’t know the difference between the types of settlements that may be offered to them.
For example, a structured settlement versus a lump sum are different types of settlements. Understanding the difference is important and working with a personal injury lawyer to ensure you accept the best option for you is recommended.
Understanding Structured Settlements and Their Benefits
As opposed to a one-time payout of a lump sum, a structured settlement is a continuous form of payments awarded to the plaintiff. One of the biggest benefits to consider when offered this type of settlement is the guaranteed income for the injured party for an extended period of time.
While some cases do not award the plaintiff enough to qualify for a structured settlement, some larger claims with severe injuries and damages provide the option. In these types of cases structured settlements are often arranged. This guarantees compensation and financial security because a larger lump sum payment can come with the risk of being spent too quickly.
If you have been injured in a personal injury accident, a personal injury attorney can fight for your rights and get you the compensation you deserve. Whether a regular settlement or structured settlement is better for you, an experienced lawyer can provide insight and guidance on this matter and help you make the best decision for your financial future. Contact Chaffin Luhana today for a free case review.