Question

beth owns a 20-pay life participating policy. she has decided that the dividends should be applied toward future premiums. which dividend option did she choose?

Answer 1

Dividend options include the Paid-Up Option and the Application to Reduce Premiums. Beth has a participating 20-Pay Life insurance policy. She has selected the Settlement Option, which ensures payments over a predetermined time period and applies dividends toward future premiums.

What alternative for settlement is more typical?

• A one-time payment. The simplest and most typical type of life insurance settlement is a lump sum payment.
• The method through which a beneficiary selects to receive death benefits payable on a life insurance policy is referred to as a settlement option. In general, a recipient has the option of receiving the proceeds in one lump payment or over time.
• Options for Life Insurance Settlements : The life insurance policy's beneficiaries may decide how they want to receive the death benefit if there is no predetermined settlement option available at the time of the insured's passing. Lump Sum: The entire death benefit will be paid to the beneficiary all at once.
• The Beneficiary Chooses a Payment Method : The beneficiary has the option of choosing a lump payment or one of the other accessible alternatives. The portion of the death benefit given to the assignee in cases where the policy is pledged as collateral for a bank loan is paid in one lump amount.

To Learn more About Settlement Option refer to:

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