Pronunciation: [lˈʌmp sˈʌm] (IPA) 
The phrase "lump sum" is spelled phonetically as /lʌmp sʌm/. The first syllable "lump" is spelled with the short "u" sound /ʌ/ and the consonant cluster "mp". The second syllable "sum" is spelled with the same short "u" sound /ʌ/ and the consonant cluster "s" and "m". The word "lump sum" refers to a single payment of a sum of money, as opposed to several smaller payments made over a period of time.
A lump sum is a single, fixed payment or amount of money that is provided or received all at once, instead of being divided or paid in installments. It refers to a complete payment made in a single transaction, with no further payments required in the future.
Typically, a lump sum payment is a predetermined sum of money agreed upon between two parties, often through a contract or agreement. It is commonly used in various financial contexts such as insurance policies, retirement plans, settlements, or purchasing assets. For instance, an individual may receive a lump sum payment from their employer as part of a severance package or as a result of a life insurance policy payout. In such cases, the recipient of the payment acquires the full amount immediately, without any need for further payments.
The concept of a lump sum can also be used to describe a large amount of money that is owed or needs to be paid all at once. This could include, for example, an outstanding debt or tax liability that requires a single payment instead of multiple installments.
In summary, a lump sum refers to a one-time, complete payment of a predetermined sum of money, which can either be received or paid in various financial arrangements or obligations, providing immediate access to the full amount without any further payments needed.
The word "lump" originated in Middle English around the 14th century, derived from the Old English word "lump" meaning a "shapeless mass". It is related to words in other Germanic languages such as German "Lumpen" (rags) and Dutch "klomp" (lump).
The term "sum" has a Latin origin. It is derived from the Latin word "summa" meaning "the highest or topmost part". It later evolved to refer to the total amount or aggregate.
The phrase "lump sum" began to be used in the late 15th century, combining the Middle English word "lump" with the Latin word "sum". It came to represent a single sum or total amount of money paid all at once, typically used in reference to a large payment or settlement.
