Final answer:
In a life insurance contract, the option 'Paid-up additions' is not a settlement option; it refers to buying additional coverage with dividends. Options such as 'Fixed period', 'Interest only', and 'Life income' are valid settlement choices for receiving a death benefit.
Step-by-step explanation:
The settlement option that is not available in a life insurance contract from the options provided is B. Paid-up additions. This term refers to an additional amount of coverage that policyholders can purchase using the policy's dividends, rather than a way to distribute the death benefit. The other settlement options listed, including A. Fixed period, C. Interest only, and D. Life income, are all legitimate ways in which a beneficiary can choose to receive the death benefit from a life insurance policy. These are designed to either provide a steady stream of income over a set period or for life, or in the case of interest only, allow the death benefit to remain with the insurance company while the beneficiary receives the interest it earns.
Cash-value life insurance is a type of policy that offers a death benefit to protect the insured's beneficiaries, as well as an accumulated cash value that the policyholder can borrow against or use in various ways throughout their lifetime.