Death Settlement Options
What are Death Settlement Options?
A death benefit option refers to how the insured would like their policy’s beneficiary to receive the death benefit after their death.
What Death Settlement Options are typically offered by Life Insurance?
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.|