why is it called lump sum 
a lump according to merriam webster is an adjective that means not divided into parts or entire 3 a sum according to the dictionary is an indefinite or specified amount of money or the whole amount or aggregate 4 as a term lump sum means an amount of money that is paid at one time or a single sum of money 5the bottom linea lump sum payment might be an option in multiple situations in mortgage lending a bullet repayment is the lump sum of the outstanding loan paid to a lender more commonly you may have a lump sum option with a pension a lump sum comes with pros and cons one advantage is that with a lump sum you have more control up front and once you receive it you can invest the money however you wish however you may receive less money in a lump sum than you would have if you took periodic payments taxes are also a concern this is a situation where it s a good idea to choose carefully if you have any questions consider reaching out to a financial advisor 