Settlement Options

Upon the death of the insured, or at the point of endowment, the contact is designed to pay the proceeds in cash, called a lump sum, unless the recipient, chooses a different mode of settlement, if no selection is made, the proceeds are automatically paid to the beneficiary in a single BLANK? (Lump Sum Payment, usually not taxable) What is this settlement option called?

Cash Payment

What are all the settlement options? (9)

Cash Payment Life Income Interest Only Fixed Period Installments Fixed Amount Installments Single Life Option Joint & Survivor Life with period certain Life Refund Income

Payments in specified amounts until all the proceeds are paid out. What settlement option is this called?

Fixed Amount

Payments for a specified time period until all the proceeds are paid out. What settlement option is this called?

Fixed Period

Insurer retains the principal & only pays out interest. What settlement option is this called?

Interest Only

Guarantees an income for two or more recipients for as long as they live. Most contracts provide that the surviving recipient will receive a reduced payment after the first recipient dies. What option is this called?

Joint & Survivor

Provides an income the beneficiary cannot outlive; no guarantee that the principal will be paid out (if the beneficiary dies too soon): available as single life or as joint & survivor. Which settlement option is this?

Life Income

Comes in either a cash refund form or an installment refund form Both options guarantee that the total annuity fund will be paid out to the annuitant or to the beneficiary. What option is this called?

Life Refund Income

The recipient is provided with the "best of both worlds" in terms of a lifetime income & a guaranteed installment period. Not only are the payments guaranteed for the lifetime of the recipient, but there is also a specified period that is guaranteed. What option is this called?

Life with period certain

The methods used to pay the death benefits to a beneficiary upon the insured's death, or to pay the endowment benefit if the insured lives to the endowment date. Are triggered by the insured's death or age 100. What is this Option called?

Settlement Options

Can provide a single beneficiary income for the rest of his/her life. Upon the death of the beneficiary, the payments stop. What Option is this called?

Single Life Option