A lump sum is a single, large payment that represents an entire amount or series of payments. It can refer to a one-time disbursement of money, often in the context of a financial settlement, inheritance, insurance claim, or lottery winnings. The term "lump sum" may also be used more broadly to describe any large, undivided amount of something, such as a lump sum payment for taxes owed or a lump sum investment in the stock market.