FAQ: Would you be better off with a lump sum settlement and investing yourself?
In doing so, you would most likely incur substantial tax liabilities on the income produced by your investments. Private investment income is simply not eligible for the tax-free benefits available under the Code. And, in contrast to private investments, there are no brokerage fees or expenses when selecting a periodic payment settlement.
In addition, periodic settlements are virtually risk free. Investments in stock and other equities can be speculative, carrying with them the risk of loss. Even less speculative investments, such as bonds and certificates of deposit, are subject to the risk of investment fluctuation.