Woodbridge Investments

Structured Settlement vs. Lump Sum: Which is Better?

After you’re awarded compensation in a personal injury case, you can choose to keep the structured settlement or sell it for a lump sum cash payment. There are pros and cons to both approaches. The answer to the structured settlement vs. lump sum question is different for everyone. There is no cookie cutter solution when it comes to your personal finances, and it is best to consult with a financial advisor before making these kind of decisions. Read on to find out some of the factors that will help in your decision on whether to sell your structured settlement or not.

Structured Settlement vs. Lump Sum: The Basics

A structured settlement is an annuity awarded to a plaintiff in a personal injury lawsuit. The payments are usually for a specific number of months or years and sometimes are paid out for the life of the annuitant.  The settlement is awarded by a judge and administered by the insurance company settling the case.  Basically, a structured settlement is a guaranteed stream of income that is paid out over many years and there are advantages to leaving a structured settlement intact..

However, an annuitant can cash out their structured settlement for a lump sum cash payment. Selling settlement payments for a lump sum has many benefits. When the money is locked up in a structured settlement, the funds cannot be accessed in cases of emergency, such as immediate home repairs, or for an opportunity, such as a down payment on a home.

Why Most People Benefit From selling Structured Settlements for a Lump Sum

Everyone’s situation is different, but the majority of accident victims can benefit from lump sum payments. Even better, you don’t have to choose between one or the other – it’s possible to sell a portion of your structured settlement. There is no limit to the number of times you can sell settlement payments for lump sums. If you don’t want to cash out your entire settlement, you can sell a specific number of payments. Unlike a structured settlement, what you do with that lump sum is up to you and your financial advisor. You’ll have access to your money when you need it, and can pursue an investment strategy that can potentially grow the lump sum into a much larger reward.

Call today (1-866-865-7044) to speak to an advisor, or visit us online for a free quote. It’s quick, easy, and all information is kept strictly confidential. Woodbridge Structured Funding, LLC will beat any legitimate offer.

Woodbridge Structured Funding, LLC: Sell structured settlement payments for cash – with ease.