What Is The Interest Only Option In Life Insurance?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The interest only option in life insurance is a settlement option for those who are the beneficiaries of life insurance proceeds. Beneficiaries often have the option of taking the policy proceeds in a lump sum, or in installments over a set period of time. The third, "interest only" option, consists of the insurance company hanging onto the death benefit and paying the beneficiary interest at regular intervals. The beneficiary can withdraw money from the death benefit as desired.
    Answered on July 13, 2013
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