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
Intention to withhold or secrete information. If an insured withholds information on a material fact, about which the insurance company has no knowledge, the company has grounds to void the ...
Annuity in which premium payments are used to purchase accumulation units, their number depending on the value of each unit. The value of a unit is determined by the value of the portfolio ...
Property coverage for damage or destruction of structures in the course of construction. For example, the standing frame of a house destroyed by fire would be covered. ...
Laws in most cases protecting life insurance policies from an insured's creditors. These laws typically exempt death benefit proceeds and policy cash values from attachment by creditors, ...
Same as term Blanket Insurance: single policy on the insured's property for (1) two or more different kinds of property in the same location; (2) same kind of property in two or more ...
Legislation that redefined life insurance and raised taxes on life insurance companies. Among the provisions were new rules for some life insurance products, including a definition of ...
Modified premium used to calculate cash surrender values in excess of that required by the naic: standard NON FORFEITURE LAW. ...
Death caused by a person without legal justification. Wrongful death may be the result of negligence, such as when a drunken driver hits and kills someone; or it may be intentional, as when ...
Canadian retirement plan much like U.S. individual retirement account (IRA). Here, an employee can contribute on a tax deductible basis C $3500 each year as a member of an employer pension ...
Have a question or comment?
We're here to help.