A lump sum is an amount of money you pay or receive all at once rather than in increments over a period of time.
For example, you buy an immediate annuity with a single lump-sum payment. Or, if you receive the face value of a life insurance policy when the insured person dies, or receive the full value of your retirement account, those payments are also lump sums.
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- Accelerated death benefit, Asset, Death benefit, Decreasing term insurance, Face value, Financial instrument, General account, Insurance trust, Insured bond, Life settlement, Survivorship life, Variable life insurance, Viatical settlement
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