Final answer:
The statement from the question that is false is 'Only the beneficiary may select' in relation to life insurance settlement options. The policy owner usually selects the settlement option, not solely the beneficiary.
Step-by-step explanation:
The student's question relates to settlement options in life insurance policies, which determine how the proceeds of the policy will be paid out upon the insured's death. The statement in the question that is false is: "Only the beneficiary may select". In reality, the owner of the policy typically chooses the settlement option, and this can be done either at the time the policy is purchased or amended at a later date. However, if the policyholder has not chosen a settlement option, the beneficiary may choose. Therefore, this option is not exclusive to the beneficiary.
It is true that increased proceeds can be provided through the accumulation of interest and that rapid depletion of proceeds can be avoided, which allows for financial longevity and stability for beneficiaries. Furthermore, proceeds can indeed be administered by the insurance company, which can act as a trustee or fiscal agent, managing distributions according to policy stipulations or beneficiary requests.