One of the reasons someone would want to take a lumpsum is to transfer/rollover funds into a better performing income producing annuity with a higher projected guaranteed lifetime income. Another reason for taking a lump-sum payment would be to integrate funds into a long-term income

Income for life plans are designed to provide a long-term guaranteed, steady stream of income (or guaranteed multiple streams of income taken strategically over an investor’s life). These plans mitigate risks like market volatility, inflation, and outliving savings, and provide long-term financial security.