Fixed Amount Settlement Option
Proceeds paid in installments of a stated dollar amount until principal and interest are exhausted.
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Under a fixed amount settlement option, the beneficiary receives:
A stated dollar amount at each interval until the principal and interest are exhausted — The fixed amount option pays the beneficiary a set dollar amount periodically, for example $1,000 per month, until the proceeds plus accumulated interest are exhausted. The duration of payments depends on the amount chosen and the interest credited, so a larger monthly amount exhausts the fund faster. It is a flexible option for beneficiaries who want a budgeted income stream with a predictable monthly amount. It differs from the life income option, which lasts for the beneficiary's lifetime, and from interest only, which preserves the principal indefinitely.
National insurance concept
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