In life insurance, a lump sum refers to a single payment made instead of a series of installments. This is typically issued to beneficiaries upon the policyholder's death.
A Pension Equity Plan (PEP) is a type of defined-benefit pension plan design in which a participant's benefit is stated as a lump sum based on the participant's age, service, and average pay, with the average pay usually based on only the final few years of employment.
