Question

Settlement options when the insured is still alive...

A. Always result in a lump-sum payment.
B. Allow the insured to change beneficiaries at any time.
C. Provide a variety of choices for receiving policy benefits.
D. Are only available in the event of a policy lapse.

Answer 1

Settlement options for life insurance policies provide a variety of choices for the insured to receive policy benefits while they are still alive.

Step-by-step explanation:

Settlement options for life insurance policies provide a variety of choices for the insured to receive policy benefits while they are still alive. These options allow the insured to access the cash value accumulated in their policy. A lump-sum payment is one possible settlement option, but there are also options to receive regular payments over a specified period of time or to establish a line of credit against the policy.