Final answer:
A life insurance policyowner can choose from all of the following settlement options: cash surrender value, loan against the policy, and annuity payments.
Step-by-step explanation:
The settlement option that a life insurance policyowner can choose includes all of the following:
- Cash surrender value - This is the amount available in cash for a policyowner if they decide to surrender the policy before it matures or the insured individual passes away.
- Loan against the policy - The policyholder can borrow money against the policy's cash value. This borrowed amount plus interest must be paid back to the life insurance company.
- Annuity payments - Instead of a lump-sum payment upon the insured's death, the benefits can be distributed in the form of an annuity, which provides regular payments over time.
Therefore, the correct answer is d) All of the above.