Question

All of these statements concerning Settlement Options are true EXCEPT a Increased proceeds can be provided through accumulation of interest b Rapid depletion of proceeds can be avoided c Proceeds can be administered by the insurance company

Answer 1

Settlement options in life insurance policies allow for increased proceeds and the avoidance of rapid depletion, but the insurance company does not typically administer the proceeds.

Step-by-step explanation:

All of the statements concerning Settlement Options are true except for the statement that proceeds can be administered by the insurance company. Settlement options refer to the different ways in which the proceeds from a life insurance policy can be distributed to the beneficiaries.

While increased proceeds can be provided through the accumulation of interest and rapid depletion of proceeds can be avoided, it is generally the policyholder or the beneficiary who has the authority to select the settlement option and administer the proceeds.

Answer 2

Settlement options allow policyholders to choose how the proceeds from a life insurance policy will be paid out. The statement that is NOT true is that proceeds can be administered by the insurance company.

The statement that is NOT true concerning Settlement Options is: c. Proceeds can be administered by the insurance company. Settlement options allow policyholders to choose how the proceeds from a life insurance policy will be paid out. While the other two statements are generally true: a. Increased proceeds can be provided through the accumulation of interest: Some settlement options allow for the proceeds to earn interest, providing a higher payout over time. b. Rapid depletion of proceeds can be avoided: By selecting a specific settlement option, the policyholder can avoid quickly depleting the funds and ensure a more controlled distribution. However, settlement options typically involve the policyholder or their beneficiaries making choices about how the proceeds will be distributed, and the insurance company merely follows the selected option. It's not about the insurance company administering the proceeds but rather honoring the chosen settlement option.