The lump-sum payment is the most widely used settlement option for life insurance policies.

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The lump-sum payment is indeed the most common way of settling life insurance policies. This option allows the beneficiary to receive the entire death benefit in one payment, which can be used for any purpose they see fit. Other settlement options include installment payments, interest-only payments, and life income options.

The Lump-Sum Payment Is the Most Widely Used Settlement Option