What are "death benefit settlement options" and how are they paid out?
There are a number of settlement options that you can elect when you buy the policy, or at any point during your lifetime thereafter. If you do not select a benefit settlement option, the beneficiary can select one following your death. The options include:
Lump Sum Payment. Your beneficiary receives one payment for the full death benefit.
Annuity. Your beneficiary can have the death benefit paid out in a series of payments over a specified period of time or during his or her lifetime. While annuity rates are guaranteed in the policy, normally these rates are lower than what you could find elsewhere.