Optional Modes Of Settlement
Definition of "Optional modes of settlement"
Choice of one of the following available to a life insurance policy owner (or beneficiary, if entitled to receive a death benefit in a lump sum at the death of an insured):
- INTEREST OPTION death benefit left on deposit at interest with the insurance company with earnings paid to the beneficiary annually.The beneficiary can withdraw part or all of the principal of the death proceeds, subject to any restrictions the policy owner may have placed on this option.
- fixed amount option death benefit paid in a series of fixed amount installments until the proceeds and interest earned terminate.
- fixed period option death benefit left on deposit with the insurance company with the death benefit plus interest thereon paid out in equal payments for the period of time selected.
- life income option death benefit plus interest paid through a life annuity. Income continues under a straight life income option, for as long as the beneficiary lives; or whether or not the beneficiary lives, under a life income with period certain option.
Popular Insurance Terms
Trust named from a private-letter ruling by the IRS that involved a trust established by a Jewish congregation on behalf of its rabbi. The operation of the trust involves the employer's ...
Independent, nonprofit, membership hospital plan. Benefits provided include coverage for hospitalization expenses subject to certain restrictions: for example, semiprivate room only. A ...
Coverage on fur coats as well as other clothes that have, fur trim. Protection is provided at any location on an all risks basis subject to the exclusions of wear and tear, war, and nuclear ...
Modification of split dollar life insurance policy in that the death benefit becomes payable upon the second death. This type of policy is ideal in those circumstances when estate taxes ...
Accrual or addition to life insurance benefits. ...
Total amount of insurance coverage available for an insured. ...
Addition to the homeowners INSURANCE POLICY AND COMMERCIAL PACKAGE POLICY that provides liability and medical coverage for damages resulting from the operation of motor boats too large to ...
Agency of the federal government formed as the result of bankruptcies of savings and loan associations during the 1930s. Insures deposits of customers up to $100,000 for each account. In ...
Trust whereby asset management is provided until a child reaches the age of majority. Upon reaching majority, the child has full use and control over the assets. The grantor of the trust ...
Have a question or comment?
We're here to help.