Meaning of the word "pay out" in English

What does "pay out" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

pay out

US /peɪ aʊt/
UK /peɪ aʊt/
"pay out" picture

Phrasal Verb

1.

to pay a large sum of money from a fund or insurance policy

Example:
The insurance company will pay out the claim next week.
The lottery paid out millions to the winners.
2.

to let out a rope or cable by slackening it

Example:
The sailors had to pay out more rope to reach the dock.
Carefully pay out the cable as the boat moves forward.