Death Benefit Option
Some life insurance policies, particularly permanent ones, offer different options for how the death benefit is paid out to the beneficiary. Common options include a lump sum, installments, or an annuity.
Detailed Explanation
Choosing the right death benefit option can help the beneficiary manage the funds effectively.
Practical Example
When Robert purchased his life insurance policy, he chose the lump-sum death benefit option for his wife, believing this would give her the most flexibility in managing the funds after his passing.
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