The phrase
"than a lump sum" means that something is worth more or has greater value when received in small, regular payments rather than as one large payment.
Full definition
The owner of a life insurance policy has the right to choose options other
than lump sum payments and should think that through.
If you can earn a decent rate of return, your investment may be worth
more than the lump sum refund you would receive.
If you or your beneficiary elect an option
other than lump sum, any interest accrued on the death benefit will be taxed.
With a family income policy, rather
than a lump sum of money, the death benefit is paid out in monthly increments as a portion of the total death benefit.
Rather
than a lump sum death benefit payout, the rider stretches out the death benefit payout over a longer period, say 10 years or 20 years.
Most students are not as financially savvy as you are, and might benefit from getting a regular payment, rather
than a lump sum at the beginning of a semester.
The reason the total amount received over the years is
larger than the lump sum is because it's been adjusted for inflation, making it an eye - catching figure.
And, if you take smaller withdrawals over time, rather
than a lump sum withdrawal, you may be able to reduce the amount you spend on taxes.
As you might expect, monthly payouts are typically less
expensive than lump sum payouts, assuming the same coverage amounts.
With a family income policy, rather
than a lump sum of money, the death benefit is paid out in monthly increments as a portion of the total death benefit.
If you or your beneficiary elect an option
other than lump sum, any interest accrued on the death benefit will be taxed.
Some companies will allow you to choose a special election to pay your policy out over a series of years, rather
than a lump sum death benefit.
If your beneficiaries elect to receive the death benefit as installments
rather than a lump sum, some of that will be taxed.
If you elect to receive an annuity, the combined annuity payments may actually be worth more
than the lump sum if the annuity owner lives a long time, essentially beating the mortality table's predictions.
Giving 25 % of the market rate for a position each year, rather
than a lump sum grant that covers the next four years, will smooth out the vesting process so the employee never reaches a cliff.
A Regular Savings Cash ISA is best if you're able to pay a regular monthly contribution, rather
than a lump sum deposit - this can be up to # 1,666 a month.
I am basically trying to understand why your DCA Annualised return of -22.68 % is
worse than a lump sum return (111.94 - 135.15) / 135.15 = -17.17 %.
With regards to the couple's pensions, Feigs suggests taking a lifetime monthly income from their company pensions rather
than a lump sum pay out.
If the companies could continue to afford the benefits, the benefits would be much larger in present value
terms than the lump sum accumulated in their DC plans.
Furthermore, I am not at all sure that the authors emphasis that the value of a periodical payment is more
than a lump sum assessed on the conventional basis.
These plans including the LIC»S single premium plan provides insurance cover of the policyholder which means that if any unfortunate incident takes place to the
insured than a lump sum amount will be given to the family.
This option is
better than a lump sum payment because it means you're more likely to have some of the money spread out over two different years, which means your net taxes paid will be lower.
He floated the idea of going back to line - item grants in the budget that are directed by individual legislators, rather
than a lump sum of cash allocated to the rank - and - file by the legislative leaders.
If you elect to receive an annuity, the combined annuity payments may actually be worth more
than the lump sum if the annuity owner lives a long time, essentially beating the mortality table's predictions.
The owner of a life insurance policy has the right to choose options
other than lump sum payments and they should think that through coz Lump sum may not always be the most prudent choice.
And you could even have a second annuity if you qualify for a pension and take it as monthly payments rather
than a lump sum.
There are a few edge cases, like if the death benefit is rolled up in an estate tax or if your beneficiaries elect to receive it in installments rather
than a lump sum, but for the most part the money is paid out without being reduced by taxes.
Family income insurance is similar to the previous types, only it pays a regular amount of money on a regular basis, rather
than a lump sum.
Craig is right, it's best to think about it in connection with a regular influx of savings rather
than a lump sum — although a lump sum is a good way to make a sizeable enough initial investment in a position that its performance can inform your value - averaging deployments subsequently.
Income Protection Agreement — provides an irrevocable settlement option, that pays the death benefit over a period of years, which provides for greater cash accumulation and a benefit stream for beneficiaries (rather
than a lump sum).
Some employees say they are being told they'll receive their entitlements through salary continuation rather
than a lump sum.
Upon your death, this feature allows you to set up your policy so that your family or beneficiary will receive monthly payments, rather
than a lump sum.
The Income Protection Option (IPO) allows a different death benefit payment other
than a lump sum.
There are a few edge cases, like if the death benefit is rolled up in an estate tax or if your beneficiaries elect to receive it in installments rather
than a lump sum, but for the most part the money is paid out without being reduced by taxes.
Disability insurance, however, pays out a much larger benefit — often as high as 60 % of your income, which is paid out each month like a traditional paycheck, rather
than a lump sum that could fall short of a thousand bucks.
You might be surprised to learn there are a handful of companies who allow you designate a fixed payment for a fixed number of years as the policy's death benefit, rather
than a lump sum benefit.
Others include the long - term care rider to help cover the costs of a nursing home or home care with a percentage of the policy's face value rather
than the lump sum.
Income Protection Agreement — provides an irrevocable settlement option, that pays the death benefit over a period of years, which provides for greater cash accumulation and a benefit stream for beneficiaries (rather
than a lump sum).
If your beneficiaries elect to receive the death benefit as installments rather
than a lump sum, some of that will be taxed.