Which life insurance option pays benefits in specified amounts over a set period of time?

The fixed-period settlement option is designed to pay out benefits in specified amounts over a predetermined time frame. This means that the beneficiary receives regular payments for a specific duration, such as 10 or 20 years, allowing for a structured approach to receiving the death benefit. The total amount of the benefit is divided by the number of payments, providing the beneficiary with a predictable income stream during the specified period.

This option is particularly advantageous for beneficiaries who may need a reliable, consistent source of income to manage expenses or financial planning needs over time. It contrasts with other options, such as the life income option, which provides payments for the lifetime of the beneficiary and does not have a predetermined period. The cash value option involves accumulating cash value within a policy rather than direct benefits, and the variable life option includes investment components that can cause fluctuations in policy value and benefits, as opposed to fixed amounts.