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Friday, November 20, 2009
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Life Insurance 101
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Call us at (800) 940-3002
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Settlement options
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The life insurance policy owner may designate a specific settlement option to be
paid upon his or her death. If the policy owner does not choose a specific option,
the beneficiary(s) will be given a number of choices. These usually include:
- Lump Sum Payment: The death proceeds of a life insurance policy are paid
to the beneficiary(s) in one lump sum payment.
- Fixed Period Payments: The death proceeds of a life insurance policy are
paid to the beneficiary(s) for a fixed period.
- Life Income with Installments Certain: The death proceeds of a life insurance
policy are paid to the beneficiary(s) in installment payments through a certain
period. After the certain period, payments will continue to be made throughout the
beneficiary's lifetime but the payment may vary from the payments during the certain
period.
- Interest Payments: The death proceeds of a life insurance policy remain with
the insurance company and the company pays the beneficiary interest payments.
- Fixed Installments: The death proceeds of a life insurance policy are paid
to the beneficiary(s) in fixed installments until the proceeds and interest on the
unpaid balance of the proceeds are exhausted.
- Single Premium Annuity: The proceeds of a life insurance policy are used
to purchase a single premium annuity from the insurance company.
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