A lump sum settlement will be better for the payment benefits. For example, most group protection policies pay a monthly benefit if an employee cannot work. In contrast, others allow the lump sum settlements to be paid in a way that works for the beneficiary.
Income Protection Policy can pay out the settlement of the policy if it feels it is good to do so. However, if it falls outside the guidelines of the policy, then it will need additional negotiation and permission to execute. Settlements can be considered case-by-case and follow a standard procedure when you put in a claim from your policy.