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Settlement Options

The different ways in which the death benefit of a life insurance policy can be paid out to the beneficiary. Common options include a lump sum, installments over a period of time, or a life annuity.

Detailed Explanation

The beneficiary can often choose the settlement option that best suits their financial needs and circumstances.

Practical Example

When Emily passed away, her husband, the beneficiary of her life insurance policy, chose to receive the death benefit as a lump sum to provide immediate financial support.

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