What settlement mode allows part of the policy proceeds to accumulate with the insurer at a guaranteed interest rate?

The interest-only option is designed to allow the policy proceeds to remain with the insurer for a specified period, during which the insurer pays interest on the principal amount at a guaranteed rate. This means that instead of taking a lump sum payment immediately, the beneficiary receives interest payments while the principal continues to accumulate with the insurance company.

This option is particularly beneficial in instances where beneficiaries may not need the full amount right away and prefer to receive income over time. The guaranteed interest rate means that the beneficiary can expect a consistent return on their funds during this accumulation period, providing a measure of financial security. The interest-only option can also give policyholders time to strategize on how best to utilize the eventual full payout.

Other options, while they might have their own benefits, do not specifically match the description of allowing the principal to accumulate with the insurer at a guaranteed interest rate in this manner.