What is the definition of Settlement Options?
Settlement Options refer to the choices an insurance policyowner can have regarding how he will receive the proceeds of his policy once it matures. This means that there are many ways by which the insurance company can pay for the benefits due to the policyowner, not just the option to get the settlement as a lump sum payment.
The policyowner can choose: one, to receive the proceeds on an installment basis; two, to receive the proceeds in pre-selected installment amounts that are regularly paid until the funds are all used up and three, to let the insurance company continue holding the funds so that it can get interest earnings. The policyowner can also create a life annuity with the proceeds and tie the payments so that he will receive a specified amount regularly for as long as he lives.
| Not a bit | Very useful |
- Severity
- Sewer Back-Up Coverage
- Shared Market
- Short-Term Disability Income Insurance
- Single Premium Annuity
- Single Premium Policies
- Soft Market
- Solvency
- Specified Disease Coverage
- Spendthrift Trust Clause
- Separate Account
- Self-Insurance
- Segregated Account
- Securitization of Insurance Risk
- Securities Outstanding
- Securities and Exchange Commission (SEC)
- Section 415
- Section 1035 Exchange
- Secondary Market
- Schedule