What is the difference between a structured settlement and a lump sum payment in Georgia?

What is the difference between a structured settlement and a lump sum payment in Georgia?

A lump sum payment delivers the entire settlement amount in a single payment at the time of resolution. A structured settlement delivers the same — or sometimes greater — total value through periodic payments over a defined period, funded by an annuity purchased by the defendant or insurer. Both are generally tax-free under IRC § 104 when arising from a physical injury claim. The right choice depends on your medical needs, financial sophistication, age, and benefit eligibility.