Should I Take a Lump Sum or Structured Settlement?

When you are dealing with any type of civil lawsuit or insurance case, the defense may offer you a lump sum or structured settlement to compensate you for your damages. It can be difficult to know which option is best suited for you. 

The best way to find out is by contacting your personal injury or civil attorney to discuss your options further. If you are struggling to make ends meet and need access to your money in advance, pre-settlement funding may be your best option. Do not hesitate to contact High Rise Financial to start your lawsuit loan application as soon as today.

Benefits of Choosing a Lump Sum Settlement

One of the biggest advantages of going with a lump sum settlement is accessing your settlement immediately. When you are struggling to cover your basic living expenses or are heading into considerable debt, obtaining all your settlement funds at once can help ease your financial burden. 

Furthermore, if the amount of money you are awarded is not substantial, obtaining a structured settlement can afford little benefit. Generally, if your settlement is for $150,000 or less, going with a structured settlement may not be in your best interests. If you go with a lump sum settlement, you can settle your case more quickly and access the funds you need when you need the most.

To apply for free, call (877) 735-0016

What Is a Structured Settlement?

In a structured settlement, the defendant or liable insurance provider will need to pay the structured settlement to another insurance company specializing in structured settlement cases. Then, this insurance company will pay you your structured settlement over a period of time. 

For this reason, before you decide to go with a structured settlement, it is important to do considerable research into the insurance company you choose. This is because your ability to obtain your structured settlement over time will rely on the success of the insurer. If the insurance company goes under, you will no longer be able to access your structured settlement.

In this way, structured settlements may be considered riskier than lump sum settlements. However, one of the benefits of structured settlements is the ability to negotiate the terms of the settlement:

• How much money are you hoping to receive regularly
• How often are you hoping to obtain payments
• How long your payments will be distributed
• If you want the option to obtain a lump sum settlement 
• How do you want your structured settlement distributed if you pass away

Benefits of Structured Settlements 

Unfortunately, although lump sum settlements can seem like an attractive option, for many, this is not the case. Those who opt for a structured settlement may find that they are more financially secure by going west payouts over a period of time. This way, they do not overspend and wind up in considerable financial debt.

Structured settlements also reduce the taxes you will be required to pay. Although personal injury settlements are not typically taxable, you will be required to pay taxes on any returns you generate by investing your settlement money. Structured settlements can allow for reduced tax obligations.

What About Pre-Settlement Legal Funding?

After you have made the decision to obtain a lump sum settlement or a structured settlement, you may still be in limbo while you wait for your funds to come through. 

When you need access to your money now, obtaining pre-settlement legal funding may be in your best interests. Legal funding means you will not need to wait for your money to come in through the insurance company or defendant. 

If you opted for a structured settlement and are waiting for your next payment to come in, legal funding can be a great way for you to get a cash advance on these funds.

Complete a Free Application form now

How to Get Your Lawsuit Loan Application Approved

The lawsuit loan application process may be far less challenging than you previously thought. To qualify for legal funding, you simply need to have legal representation, the 18 years of age are older, and your attorney must expect to recover compensation in your case. Your lawyer will be responsible for covering your lawsuit loan repayment once your settlement funds come in. This way, you do not have to worry about paying back your pre-settlement funding in advance.

Many people have concerns that having a poor credit score or limited income will render them ineligible for pre-settlement funding. Not with us. High Rise Financial understands the financial trauma you are going through. Your financial distress could have decimated your credit. That is not your fault, particularly when someone else’s negligence or misconduct is the cause of your damages.

Once you fill out your application for a lawsuit loan, our team of loan specialists will reach out to your attorney to discuss the specific circumstances of your case. Once we talk to your lawyer and know more about how much you are going to be awarded and when we will be able to determine whether we can approve your application for legal funding. If so, you can expect us to send your money to your bank in as little as 24 hours. 

Contact High Rise Financial for Legal Assistance Today 

Whether you choose a lump sum or a structured settlement, High Rise Financial is here to help you obtain a portion of your funds ahead of time. 

Do not hesitate to contact our loan specialists to discuss your eligibility for a lawsuit loan today. You can reach us through our quick contact form or by phone with questions or concerns or to apply now!

Call or text (877) 735-0016 or fill out our form to apply today for free.