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