Lump-Sum Payment

A one-time payment for the total or partial value of an asset. A lump-sum payment is usually taken in lieu of recurring payments that would otherwise be received over a period of time. The value of a lump-sum payment is generally less than the sum of all payments that the party would otherwise receive, since the party paying the lump-sum payment is being asked to provide more funds up front than it otherwise would have been required to.

Lump-sum payments are often used in structured products that typically provide payouts over a series of times, such as annuities or other retirement vehicles. This type of payment is also used in structured settlements, and in some corporate retirement packages, in which the company will incentivize employees to retire early by providing all retirement funds up front.

Investment dictionary. . 2012.

Look at other dictionaries:

  • lump sum payment — ˌlump ˈsum [lump sum lump sums] (also ˌlump ˌsum ˈpayment) noun an amount of money that is paid at one time and not on separate occasions • S …   Useful english dictionary

  • lump-sum payment — n. A payment made once in a single amount, as opposed to smaller payments over time. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

  • lump-sum payment — A single payment in contrast to installments; e.g. single premium payment for life insurance; a single lump sum divorce settlement; or single worker s compensation payment in lieu of future monthly installment payments. See also alimony …   Black's law dictionary

  • lump sum payment — payment of one large sum of money at one time …   English contemporary dictionary

  • lump-sum payment — A payment in one sum, as distinguished from payment in instalments or at intervals …   Ballentine's law dictionary

  • lump sum — noun a complete payment consisting of a single sum of money • Hypernyms: ↑payment * * * lump sum noun A single sum of money in lieu of several • • • Main Entry: ↑lump * * * lump sum UK US noun [countable] [ …   Useful english dictionary

  • lump sum — A large one time payment of money. Bloomberg Financial Dictionary * * * lump sum lump sum ➔ sum1 * * * lump sum UK US noun [C, usually singular] (also lump) ► an amount of money that is paid in one large payment on one occasion: »She …   Financial and business terms

  • lump-sum settlement — The payment of an entire debt all at once rather than in installments; the payment of a set amount of money to satisfy a pecuniary obligation that might otherwise continue indefinitely. Dictionary from West s Encyclopedia of American Law. 2005.… …   Law dictionary

  • lump sum order — an order for payment of a single sum. In a divorce action the court has the power to make an order for the payment of a capital sum or the transfer of property. Such an order can be made at the date of the divorce or within a period specified by… …   Law dictionary

  • Lump sum — is a one time payment of money, as opposed to a series of also* Lump sum tax * Present value * Interest …   Wikipedia

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