Question

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

Answer 1

Answer:

The correct answer is The beneficiary will only receive payments of the interest earned on the death benefit.

Explanation:

The purpose of the compensation is to return the insured to the initial situation. In other words, with the payment of an insurance premium you buy a promise, a future benefit, it is not something material. It only materializes when the accident occurs but the guarantee of compensation has always existed, it has been there since the first day of the insurance's entry into force.

In short, this means that the insurance is not a material product, it only materializes when the accident occurs but the guarantee of compensation always exists, it is there from the first day of the insurance coming into force.