In the settlement of policy proceeds under an installment option, each payment includes (where principle equals proceeds at the date of death):

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In the settlement of policy proceeds under an installment option, each payment includes principal and interest. The principal is the proceeds at the date of death, and the interest is added to each payment, calculated based on a set interest rate or an adjustable rate. This type of settlement allows the beneficiaries to receive regular income payments instead of a lump sum.

In the Settlement of Policy Proceeds Under an Installment Option