4.2 Policy Proceeds and Settlement Options
Settlement of the policy takes place when death claim benefits are paid out to the beneficiary(ies) through any one of several different venues.
- Single Premium Payment
- Installment Payments
- Income for Life
- Joint Life Income
- Interest Payments
- Special Payment Plans
Optional modes of settlement are provided by most life insurance policies in lieu of the traditional lump sum payment (or lump sum cash).
- Interest Only
- Fixed Period
- Fixed Amount
- Life Income
