Fixed-amount 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. Any excess interest earned above the minimum guaranteed is applied to extend the time period for making the payments. This option emphasizes dollar amount per installment as opposed to length of time installments are to be paid.
Popular Insurance Terms
Section of the Internal Revenue Code that provides for the taking of the proceeds from one life insurance policy or annuity and the reinvesting of these proceeds immediately in another life ...
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