Optional Modes Of Settlement
Definition of "Optional modes of settlement"
Choice of one of the following available to a life insurance policy owner (or beneficiary, if entitled to receive a death benefit in a lump sum at the death of an insured):
- INTEREST OPTION death benefit left on deposit at interest with the insurance company with earnings paid to the beneficiary annually.The beneficiary can withdraw part or all of the principal of the death proceeds, subject to any restrictions the policy owner may have placed on this option.
- fixed amount option death benefit paid in a series of fixed amount installments until the proceeds and interest earned terminate.
- fixed period option death benefit left on deposit with the insurance company with the death benefit plus interest thereon paid out in equal payments for the period of time selected.
- life income option death benefit plus interest paid through a life annuity. Income continues under a straight life income option, for as long as the beneficiary lives; or whether or not the beneficiary lives, under a life income with period certain option.
Popular Insurance Terms
Coverage for a lender who has accepted property on the floor of a merchant as security for a loan. If the merchandise is damaged or destroyed, the lender is indemnified. The policy is on an ...
services provided in an employee benefit plan such as a pension plan. An employer provides the clerical staff to operate the plan, in effect acting as custodian. The trustee provides ...
Loss occurring by accident or chance, not by anyone's intention. Insurance policies provide coverage against losses that occur only on a chance basis, where the insured cannot control the ...
Automatic protection for an insurer against losses that exceed a predetermined loss limit. This reinsurance may be subdivided into three primary types: excess of loss, catastrophe loss, and ...
Disability in which a wage earner is forever prevented from working at full physical capability because of injury or illness. ...
Individual who has met professional standards of the Internal Revenue Service and the Department of Labor for signing the actuarial reports required by the Employee Retirement Security Act ...
Nonparticipating life insurance under which the first few annual premiums are smaller than would be the case under a traditional nonparticipating policy. While the maximum amount of these ...
Statement regarding an insured's retention of low-severity risks because they are not catastrophic, and can be absorbed without having a dramatic effect on the financial structure of a ...
The definition of special acceptance explains how two insurance institutions work together for the benefit of the masses. In order to define what special acceptance means, we must ...
Have a question or comment?
We're here to help.