Today, 70 percent of HECM loans are fixed rate, where proceeds are disbursed only through a single lump sum.

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They have not said whether they plan to receive their payout in a single lump sum or in annual instalments.

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You give an insurance company a single lump sum of money and they give you a paycheck for life, or longer, depending on the payout option you select.

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To figure the five-year-averaging tax on a lump sum payout, you first determine how much a single taxpayer would owe if one-fifth of the lump sum represented all his taxable income for the year.

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