Which of the following is the most common settlement option?

Question

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Lump-sum payment is the most common settlement option as it provides the beneficiary with a one-time payment of the death benefit. This option is simple and easy to understand, and provides immediate access to funds, which can be helpful in covering immediate expenses such as funeral costs. Other options such as life income, limited installment or variable installments may provide a guaranteed income stream, but they may also have limitations and conditions that can be complicated to understand. Proceeds left with the company is not a settlement option, but rather an option for the beneficiary to keep the funds with the life insurance company earning interest.

Which of the Following Is the Most Common Settlement Option