Settlement Options
The different methods for paying out a benefit available to
beneficiaries when an individual covered by a life insurance policy
dies. The simplest method is a lump sum payment of the value of the
policy. It is also possible to leave the entire settlementwith the
insurance company and collect interest, retaining the right towithdraw
principal funds at any time. Payment
schedules are also available based on payment amount or duration. In
either case, interest will accrue on the money that remains with the
insurance company. There are also a range of options that pay benefits
over the entire life of the beneficiary.
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