Lump sum payouts give you all your money at once, whereas monthly payments come in smaller pieces over time. If you want to make investing or other financial decisions with your money, then taking it in one big chunk could be beneficial. But if you don't want to spend it immediately and would like to make investments in the future, then monthly payments may be better suited for you instead.
If you are looking to use the money in the near future, taking a lump sum payout is probably your best option.
With a lump sum payout, you can invest your money in ways that return more than any small monthly payment could provide. For example, if you have $10,000 with which you would like to purchase a car, you could turn around and sell that immediately for $11,000. You can then use that money to buy a slightly better used car.
However, if you want to invest your money in the long-term and make better returns than what is offered in the stock market, monthly payments may be more efficient.