Settlement options for Life policy (1 of 2)

1. Cash Settlement: This is a common option for most life insurance policies. In cash settlement, the policyholder can choose to receive lump-sum payment equal to the total death benefit amount when the policyholder passes away. 2. Annuity Settlement: This option allows the policyholder to receive the death benefit in the form of periodic payments over a pre-determined time period. This can be either a fixed amount or a variable amount with a guaranteed minimum payment. This settlement option provides the policyholder with income while they are still alive, and then is paid out upon passing.