A death benefit option refers to how the insured would like their policy’s beneficiary to receive the death benefit after their death.
In addition to the lump-sum settlement option, the death benefit of a life insurance policy can also be paid in equal amounts every month to the beneficiary. The details are as follows:
|Examples of Death Settlement|
|Installment Payments (Fixed Amount)||Following the death of the insured, the death benefit will be paid to the beneficiary in equal amounts every month until the entire amount of the proceeds has been paid.|
|Installment Payments (Fixed Period)||Following the death of the insured, the beneficiary will receive the death benefit as an annuity over a fixed period of 10 years.|