What are the basic settlement options?

The basic settlement options refer to the ways in which the proceeds of a life insurance policy can be paid out to the policy's beneficiaries after the insured's death. The correct choice identifies the standard methods among these options.

Fixed amount allows the beneficiary to receive a specified amount of money at regular intervals until the policy proceeds are exhausted. A fixed period option provides payments for a predetermined length of time, which can be beneficial for budgeting purposes. The interest option allows the beneficiary to leave the policy proceeds with the insurer to accrue interest, with payouts made at various intervals. Lastly, the life income option guarantees regular payments to the beneficiary for as long as they live, offering financial security.

These four options are fundamental in life insurance and provide essential avenues for managing the death benefit in ways that cater to the unique needs and preferences of beneficiaries.

Other options mentioned, including cash surrender value, policy loans, and various riders like double indemnity and waiver of premium, do not pertain to how benefits are settled after death, but rather to other aspects of policy management or claims features. Thus, they do not fit within the definition of basic settlement options.