Series 26: Settlement Options For Insurance Policies

Settlement Options for Insurance Policies

With variable life insurance, the insured can choose how the beneficiary will be paid upon his death. Here are some of the possibilities:

• Lump sum—the entire amount is paid upon death

• Fixed amount—the amount is put into an interest bearing account, and the beneficiary receives a fixed amount over regular increments of time until the amount runs out

• Fixed period—the amount is put into an interest-bearing account, and the beneficiary re