Life Settlement Options

Life with period certain

Recipient gets the "best of both worlds" its lifetime income and guaranteed installment period

Life income

Guaranteed for as long as the recipient lives. Payments will stop when the beneficiary dies, based on the type chosen

Joint and survivor

Guarantees income for two or more recipients for as long as they live

Single life

Provides payment for the rest of beneficiary life, upon death the payments

Cash payment

The contract pays the proceeds in cash, called lump sum. It's the default method if no method is chosen, not taxable as income

Life settlement options

The methods used to pay the death benefits to a beneficiary upon the insured death

Interest only

The policy proceeds are held by the insurer and accumulate interest, the beneficiary will receive the interest on a monthly basis (interest is taxable)

Life refund

If the beneficiary dies before the fund is depleted, a lump sum or installment payments will be refunded to a beneficiary

Life income

Also known as straight life, provides income that the beneficiary cannot outlive

Fixed amount installments

The proceeds will be paid in equal amounts until the death benefit is paid in full. The length of time will be determined by the death benefit and the amount of the payment chosen

Fixed period installments

The proceeds will be paid over a fixed period of time. The money amount will be determined by the death benefit and the period of time chosen. If recipient dies before the period is over the payments will continue to a named beneficiary