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What are Life Insurance Settlement Options? – Definition, 4 Options

life insurance settlement options

Life Insurance Definition

Life insurance policy dies the beneficiary, and beneficiaries eligible for the policy death benefit.

And inside the life insurance policy, there are life insurance settlement options that pertain to the method in which the funds payable to the beneficiary.

Usually, there are many different settlement choices available to the beneficiary (beneficiaries).

And life insurance settlement options many circumstances, beneficiaries select the lump sum payment. It happens when the overall amount of the funds settle at one time in one price.

It proceeding with this choice can often help the beneficiary choose to pay off significant obligations such as funeral and burial expenses and any other final debts of the deceased.

The funds also replace the insured person’s income and help to survive loved ones pay ongoing living expenses.

If the beneficiaries prefer not to collect the whole amount of the death benefit at one time, there are alternative settlement options that select. Several of the most common of these can include:

1. Interest Income Option

2. Life Income Option

3. Joint and Survivor Life Annuity Option

4. Specific Income Option

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