Fixed Period Settlement Option
Proceeds paid in equal installments over a stated number of years, with each payment part principal and part interest.
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Under the fixed period settlement option, the insurer pays the beneficiary:
Equal installments of principal and interest over a stated number of years — The fixed period option distributes the death benefit, plus interest, in equal installments over a chosen period of years. Each payment blends a return of principal with earnings, and the fund is exhausted at the end of the stated period. It is useful for covering a known future expense such as a college education, but it provides no lifetime guarantee for the beneficiary.
National insurance concept
Under the fixed period settlement option, the beneficiary receives:
Principal and interest paid in equal installments over a guaranteed period of time — The fixed period option divides the proceeds, plus the interest they earn, into equal installments paid over a stated number of years. The amount of each installment is computed so the principal and interest are exhausted exactly at the end of the period. It is one of the settlement options in objective LIFE-II.E.9, distinct from life income (lifetime), fixed amount (level payments until exhausted), and lump sum.
National insurance concept
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