What is the difference between a structured settlement and a lump-sum settlement?

Structured settlement and lump-sum settlements are two different types of settlements that can be part of a legal agreement involving a personal injury case in Virginia. In a structured settlement, the payment of money is spread out over a period of time. This could mean monthly, yearly, or lump-sum payments that are paid over a set period of time. The structured settlement is often negotiated between the parties and the court to determine what kind of payments would be appropriate for the injured person. On the other hand, a lump-sum settlement is a one-time payment made to the injured person at the end of a personal injury case. This one-time payment is usually done immediately after a settlement is reached and the parties involved agree to it. The injured person would have immediate access to the money and does not need to wait on a payment plan. However, lump-sum settlements can be very expensive, as the injured person might not be able to get the full amount of money that they are owed in the long term. In Virginia, it is important for injured persons to understand the differences between the two types of settlements so that they can make an informed decision when it comes to agreeing to a settlement. Ultimately, the decision of whether to agree to a lump-sum settlement or a structured settlement will depend on the specific case and the desires of the injured person.

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What is the difference between a structured settlement and a lump-sum settlement?

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