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Compose Elect Settlement: make editing documents online simple

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Settlement Option. Under a settlement option, the maturity amount entitled to a life insurance policyholder is paid in structured periodic installments (up to a certain stipulated period of time post maturity) instead of a 'lump-sum' payout. Such a payout needs to be intimated to the insurer in advance by the insured.
The four most common alternative settlement approaches are: the interest option, under which the insurer holds the proceeds and pays interest to the beneficiary until such time as the beneficiary withdraws the principal. The fixed period option, under which the future value of the proceeds is calculated and paid in
Fixed Period Option With a fixed period settlement, your beneficiary receives payments in equal amounts over a specific period of time. If the beneficiary dies before the time period is over, the remaining balance will pass to a secondary beneficiary.
The Annuity Settlement Option allows clients to customize how death benefit proceeds are paid out to beneficiaries. Rather than having the proceeds paid out all at once, clients can choose to distribute some or all of the proceeds to beneficiaries gradually, as annuity payments.
fixed-amount settlement option. Choice of beneficiary in which the death benefit of a life insurance policy is retained by the company to be paid as a series of installments of fixed dollar amounts per installment until the death benefit and interest are exhausted.
Definition of 'Settlement Option' Definition: Under a settlement option, the maturity amount entitled to a life insurance policyholder is paid in structured periodic installments (up to a certain stipulated period of time post maturity) instead of a 'lump-sum' payout.
Vertical Settlement Can pay up to 80% of the policy's face value. There are no future premium payments. Generally tax-exempt. Broker's fees and commissions can be up to 30% of your payout.
Correct! The life-income option, also known as straight life, provides the recipient with an income that he or she cannot outlive. It pays the benefit while the beneficiary is alive. However, the payments stop at the beneficiary's death. Interest only is a settlement option.

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