What is the alternative term for the cash payment settlement option in insurance?

The cash payment settlement option in insurance is commonly referred to as a lump sum. This term signifies that the policyholder receives the total amount of the death benefit or cash value all at once, rather than in installments or through an annuity. A lump sum payment provides immediate access to the funds, allowing beneficiaries to use the money as they see fit without waiting for future payments or enduring restrictions that may accompany installment options.

In contrast to the lump sum option, other terms like installment payment, monthly annuity, or deferred payment suggest a distribution structure over time rather than an immediate payout in full. An installment payment involves receiving the benefit in several portions over a set period, while a monthly annuity provides regular payments for a specified duration. Deferred payment indicates a scenario where payments are postponed to a future date, which also does not align with the concept of a cash settlement made all at once.