Life Policy Settlement Options

Straight Life (Pure or life income only)

Payments are guaranteed for the lifetime of the recipient. upon death, payments will cease. This is a SINGLE LIFE option since payments will not be made to anyone other than the original recipient

fixed amount

payments are for a specified dollar amount paid monthly until the benefits, along with interest are exhausted.

fixed period

payments are guaranteed for a specified period of time, such as 10 or 20 years after which time payments will cease. the interest will increase the amount of each payment

Joint and survivor income option

payments are guaranteed for the lifetime of 2 or more recipients. upon the death of the first recipient, payment continues to the survivor(s) until death of the survivor.

life income period certain

payments are guaranteed for the lifetime of the recipient or a specified period of time, whichever is longer. if the recipient dies prior to the end of the period certain, the payments continue to another person until the end of the period certain.

Joint life income option

payments are guaranteed to 2 or more recipients until the first recipient dies, then all payments cease

life refund

payments are made for the lifetime of the recipient. upon death if a recipient has not received an amount equal to the total death benefit, the balance is refunded to the beneficiary either in a lump sum called CASH REFUND or in installments as in the INSTALLMENT REFUND

Interest Only

the death benefit proceeds may be left with the insurer while interest payments are paid at least annually or more frequently. the principal amount does not decrease, and the interest generated is taxed as ordinary income when paid to the beneficiary. this method of providing income is known as CAPITAL CONSERVATION

life income option

this option allows the insurer to use the death benefit to purchase an annuity on behalf of the beneficiary *straight life (pure or life income only) *life income period certain *life refund *joint and survivor income option *joint life income option