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Meaning / Definition of

Lump Sum

Categories: Credit and Debt,

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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