In a fixed amount settlement option, what does the policy owner specify?

In a fixed amount settlement option, what does the policy owner specify?

• A. The duration of the payments
• B. The amount to be paid per installment
• C. The frequency of the payments
• D. The conditions upon which payments commence

Answer: (B)

In a fixed amount settlement option, the policy owner specifies the amount to be paid per installment. This means that the owner decides how much money will be distributed at each payment interval without changing the total amount being disbursed over the settlement period. This option allows the policy owner to have control over the payment amount, ensuring a predictable income stream over time. The fixed amount settlement option remains particularly useful for individuals who want to manage their finances carefully, as it helps in budgeting and maintaining a steady cash flow. It is ideal for beneficiaries who need to know how much they will receive regularly, making financial planning simpler. The total duration of the payments will depend on the chosen fixed amount and the total death benefit available under the policy, but the key feature that the policy owner controls is certainly the installment amount itself.

In a fixed amount settlement option, the policy owner specifies the amount to be paid per installment. This means that the owner decides how much money will be distributed at each payment interval without changing the total amount being disbursed over the settlement period. This option allows the policy owner to have control over the payment amount, ensuring a predictable income stream over time.

The fixed amount settlement option remains particularly useful for individuals who want to manage their finances carefully, as it helps in budgeting and maintaining a steady cash flow. It is ideal for beneficiaries who need to know how much they will receive regularly, making financial planning simpler. The total duration of the payments will depend on the chosen fixed amount and the total death benefit available under the policy, but the key feature that the policy owner controls is certainly the installment amount itself.