Life Insurance Beneficiaries Georgia GA
Reader’s Question:
Are there any other options on how I want my beneficiaries to receive the life insurance proceeds aside from one lump sum?
Jimmy
Atlanta, GA
People usually purchase life insurance policy to provide additional income for their beneficiaries because of a loss of a source of income caused by death. The benefits from the life insurance policy can be paid to the beneficiary in one lump sum or monthly payment. However, there are still other options to choose from.
Life income with no certain period provides income to the beneficiary as long as he/she lives. Once the beneficiary die, the payment of income ceases. Life Income with certain periods on the other hand allows the beneficiary to choose to receive the income or proceeds in a certain number of years like 10, 15 or 20. For example, in a life income with a 20-year period, if the beneficiary dies after receiving 2 years of the income from the life insurance company, the income will not cease until remaining 18 years is complete. With Joint and Last Survivor Income option, proceeds will be paid to the two beneficiaries. If one person dies, the remaining beneficiary will continue receiving the income. Only if the remaining beneficiary dies will the payment of income ceases. Interest Income option allows the beneficiary to collect only the interest in whatever manner while the principal remains intact with the life insurance company. With Fixed Period Income option, if the beneficiary wants to receive the proceeds in a period of 10 years, the life insurance company will pay an equal amount each month, quarterly, semi-annually or every year for 10 years. The last life insurance settlement option is called fixed amount income option. The beneficiary decides the amount he/she wants to receive every month until the life insurance benefit is exhausted.
Tags: life insurance
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