Life settlements for life insurance are the options that the beneficiary has in receiving the death benefit upon the death of the Insured person.
1) Lump Sum. The entire amount is paid to the beneficiary, all at one time, shortly after the Insured person's death.
2) Fixed Amount. The death benefit is paid in set installments, plus interest, until the entire death benefit has been paid to the beneficiary.
3) Fixed Period. A time in the future is set when the entire death benefit is to be received in full by the beneficiary. Then it is paid at set times, plus interest, so that the entire amount is paid out by that point in time.
4) Interest Only. The life insurance company holds the death benefit in trust and pays the interest earned to the beneficiary at set intervals. The death benefit is paid out in a life income plan.
5) Life Income. The insurance company uses the death benefit to purchase Single Premium Immediate Annuity, so that income to the beneficiary will continue as long as the beneficiary is alive.
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1) Lump Sum. The entire amount is paid to the beneficiary, all at one time, shortly after the Insured person's death.
2) Fixed Amount. The death benefit is paid in set installments, plus interest, until the entire death benefit has been paid to the beneficiary.
3) Fixed Period. A time in the future is set when the entire death benefit is to be received in full by the beneficiary. Then it is paid at set times, plus interest, so that the entire amount is paid out by that point in time.
4) Interest Only. The life insurance company holds the death benefit in trust and pays the interest earned to the beneficiary at set intervals. The death benefit is paid out in a life income plan.
5) Life Income. The insurance company uses the death benefit to purchase Single Premium Immediate Annuity, so that income to the beneficiary will continue as long as the beneficiary is alive.