· There are two subtypes which of all the following best describes the fixed-period settlement option: fixed payment and fixed period. Fixed payment – The beneficiary chooses to receive five equal payments of $20, The insurance company will agree to pay $20, plus interest due to the policyholder over time until the full amount due is paid.
What is a fixed-period settlement option?
Under the fixed-period option also called period certain a specified period of years is selected and. This settlement option is good for beneficiaries who need larger payments over a shorter amount of time. Fixed payment and fixed period.
What are the different types of settlement options in a policy?
a. Interest only b. Fixed-period installments c. Automatic premium loan d. Life income LH74005 Feedback Your answer is correct There are four settlement options: interest only, fixed-period installments (period certain), fixed-amount installments and life income. An automatic premium loan is a policy loan provision.
What are the four settlement options for an Automatic Premium Loan?
There are four settlement options: interest only, fixed-period installments (period certain), fixed-amount installments and life income. An automatic premium loan is a policy loan provision. The correct answer is: Automatic premium loan
Who are the parties to the fixed-amount installment life insurance settlement option?
The correct answer is: The policyowner and the beneficiary All of the following are true regarding the fixed-amount installment life insurance settlement option, EXCEPT: Select one: a. Payments consist of principal and interest. b. Payments are made until the principal and interest reach zero.
What is a fixed settlement option?
Definition of 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.
Which of the following is a settlement option?
There are four settlement options: interest only, fixed-period installments (period certain), fixed-amount installments and life income.
What is the purpose of a fixed settlement option quizlet?
A fixed period option pays policy proceeds in equal installments over a period of months or years.
What is a settlement option?
Settlement Options — in life insurance, how proceeds are paid to the designated beneficiaries. Most life insurance policies provide for payment in a lump sum.
What are the types of settlement options?
The following are the most common options available:- Lump Sum. The beneficiary takes the full amount of the death benefit as a single settlement. ... - Interest Only. ... - Fixed Period. ... - Life Annuity. ... - Life Annuity with Period Certain.
Which is an example of a type of settlement option?
An annuity or a pension is type of settlement option where the insured gets regular stream of income after the completion of the maturity period when the insured reaches the vesting age.
What is the purpose of settlement options in life insurance quizlet?
These settlement options are also known as life income settlement options. Life income settlement options share a common element: they involve income payments that the payee cannot outlive. In essence, the proceeds of the insurance policy are used to buy an immediate annuity on the payee's life.
How are settlement options paid quizlet?
The insurer pays the proceeds to the beneficiary. *The insurer pays the proceeds, either in a lump sum or under one of the other settlement options. The insurer keeps the interest, thus increasing the death benefit amount. The insurer pays the proceeds in a lump sum.
Which of the following settlement options in life insurance is known as Straight life quizlet?
Which of the following settlement options in life insurance is known as straight life? Correct! The life-income option, also known as straight life, provides the recipient with an income that he or she cannot outlive.
What are the most common settlement options in a life insurance program quizlet?
What are the four most common settlement options? lump-sum payment, proceeds left with the company, limited installment payment, and life income option.
What are the basic settlement options for life insurance?
Common Life Insurance Settlement OptionsLump-Sum Payment. A lump-sum payment is perhaps the easiest to understand. ... Interest Only. ... Interest Accumulation. ... Fixed Period. ... Lifetime Income. ... Lifetime Income With Period Certain.
What are settlement options for life insurance policies?
Common Life Insurance Settlement OptionsLump-Sum Payment. A lump-sum payment is perhaps the easiest to understand. ... Interest Only. ... Interest Accumulation. ... Fixed Period. ... Lifetime Income. ... Lifetime Income With Period Certain.
What is a settlement in insurance?
Insurance settlement. The payment of proceeds by an insurance company to the insured to settle an insurance claim within the guidelines stipulated in the insurance policy.
What is an annuity settlement option?
Annuity Settlement Options - One of the unique features of an annuity is the opportunity to elect a settlement option and set up a dependable stream of income. If a settlement option is elected, Gleaner will make periodic payments to the annuitant.
Which of the following settlement options does not include a life contingency?
Settlement options with a life contingency base payments on which of the following? The fixed amount option does not include a life contingency.
Who has the right to select the settlement option?
c. The policyowner has the right to select the settlement option.
What is fixed period option?
A fixed period option pays policy proceeds in equal installments over a period of months or years. Which of the following is NOT considered when determining the amount of the installment?
What is interest only option?
The interest only option leaves the proceeds with the insurer and pays the interest to the beneficiary on an installment basis.
Which is larger, the longer time period or the larger the payment amount?
The correct answer is: The larger the payment amount, the longer time period payments will be received.
What is payment consisting of?
a. Payments consist of principal and interest.