SOME THINGS IN LIFE YOU CAN'T AVOID . . .BUT THAT'S THE TIME TO JUST CALL LLOYD.
Defining the Difference between a Structured Settlement and a Lump Sum Payout
Sometimes in life we are hit with the unexpected, especially with car accidents or other types of personal injuries. When settling a personal injury case, the payout will come in the form of either a lump sum or a structured settlement. As a personal injury attorney, Lloyd H. Thomas Law works with our clients to help them receive the best possible settlement for their case. Let’s take a look at the differences between lump sum payouts and structured settlements.
Lump Sum Payouts
As the name suggests, lump sum payouts are when the plaintiff receives a one-time lump of cash from the defendant as payment for the settlement. Lump sum payouts are the preference of most people and therefore the majority of personal injury cases result in these payouts.
Structured Settlements
As opposed to receiving the entire payout at one time, structured settlements result in the plaintiff receiving payments over the course of years, usually starting with an initial sum of money from the defendant right after the settlement. These are not the preference of most plaintiffs and are less common in personal injury payouts.
What are the Benefits of Lump Sum Payouts vs Structured Settlements?
While these two types of settlements are different, they each have benefits. This is why it’s important to hire an injury attorney. Let’s take a look at the benefits of each one and why one might be preferred over the other in different circumstances.
Benefits of a Lump Sum Settlement
When receiving a lump sum, you get all of your money at one time. Oftentimes a personal injury involves medical bills and other expenses, so having the money right away to pay those bills is a big help. These are especially beneficial for smaller payouts. Another one of the great benefits is the peace of mind because once the payment is received, the case is completely over with.
Benefits of a Structured Settlement
Structured settlements can have their own advantages, especially if the case involves a significantly large payout. Unfortunately, most people are unaccustomed to having large sums of money and they often spend it too quickly for their own good when receiving a lump sum. We often see a similar situation when people win the lottery. Structured settlements, however, can help you pace your spending and have financial security for years to come. Another reason it is beneficial for large payouts is because you will have less money in your bank account and this will help save you money on taxes.
Contact Lloyd Thomas Law
Do you have a personal injury case or questions about your settlement? Call us at (404) 848-8898 or send us a message today. Lloyd H. Thomas Law has the experience and expertise to help you properly settle your case. When the unexpected happens in life and you need help with a settlement we are here to help!
