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

How are a lump sum and a structured settlement different?

A:  A lump sum is a one-time payment that settles a claim in full, while a structured settlement is a series of periodic payments over a specified period or a lifetime. Lump-sum payments offer immediate access to funds but may be challenging to manage over time, whereas structured settlements provide long-term financial stability and tax advantages.