Agent Randy E. Hoffman(08/11/2016) CADOI#0H51968
NO! Very good question because many people are worried about how they would handle a huge sum of money all at once. Beneficiaries can choose to settle with the insurer in a number of ways aside from the obvious and common method of a lump sum payment. These optional modes of settlement include the following:
- Leave the proceeds with the insurer and receive annual interest payments;
- Accept the proceeds in installments for a specified period of time (fixed years installments);
- Accept the proceeds in installments of a specified amount (fixed amount option); and
- Accept the proceeds as a life annuity (systematic liquidation of principal and interest) for the life of one or more persons.