Lump Sum Settlement
The default settlement option: proceeds paid in a single check to the beneficiary on receipt of proof of death, income-tax-free.
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Which life insurance settlement option pays the entire death benefit to the beneficiary in a single payment?
Lump sum — The lump sum settlement option pays the full death proceeds to the beneficiary at once in one payment. It is the most common choice because it gives the beneficiary immediate, complete access to the funds and maximum flexibility in deciding how to use them. The other options, such as interest only, fixed period, fixed amount, and life income, are installment arrangements in which the insurer retains the principal and distributes it over time according to the chosen method. Each alternative exists to serve a beneficiary who prefers a structured income stream over a single payment.
National insurance concept
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