The insurance company selects the method by which the proceeds of a life insurance policy are paid to the beneficiary.

Question

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The policy owner typically chooses the method of payment, or settlement option, for the proceeds of a life insurance policy, not the insurance company. This choice is often made at the time the policy is purchased and can usually be changed by the policy owner at any time before the claim is paid.

The Insurance Company Selects the Method by Which the Proceeds