WHAT ARE THE DISADVANTAGES OF A LUMP SUM PAYMENT?
The main disadvantage is that you would not have a guaranteed, steady income in the future. So if you are not good at budgeting yourself and investing so that you got steady income from the lump sum, you could find yourself within a short time in very dire financial circumstances. You might arrange for the lump sum to be paid in several installments over the course of a few years. If so, you might lose some of the future installments if you remarry. An accountant or tax adviser can advise whether a lump sum would result in a heavy tax burden.
