Life Policy ProvisionsQuestion 159 of 315
Under which settlement option does the insurer retain the death benefit and pay only the earnings on it to the beneficiary at regular intervals?
a.Interest only
b.Fixed amount
c.Fixed period
d.Life income
Explanation
Under the interest-only settlement option, the principal remains with the insurer and the beneficiary receives only the interest credited on those proceeds, typically until a future date or until the beneficiary elects another option.
Law Reference: Cal. Ins. Code §10113Practice all 315 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)