Which of the following best describes fixed period settlement option
A. Only the principal amount will be paid out within a specified period of time
B. The death benefit must be paid out in a lump sum within a certain period time period
C. Income is guaranteed for the life of the beneficiary
D. Both the principal and interest will be liquidated over a selected period of time
The Correct Answer for the Given Question is Option D. Both the principal and interest will be liquidated over a selected period of time
Answer Explanation:
In a fixed period settlement option, both the principal and interest will be liquidated over a selected period of time. This can be a good option for those who want the security of knowing when their debt will be paid off. The downside is that if interest rates go up, the borrower will have to pay more each month. In the fixed period settlement option, both the principal and interest will be liquidated over a selected period of time. This makes it easier to budget for your monthly mortgage payments, as you’ll know exactly how much you need to pay each month. Plus, it can offer peace of mind knowing that your mortgage will be paid off within a specific timeframe.
This is usually done in order to ensure that the policyholder does not default on their payments, and to provide them with a way to get their money back if they need it. There are two main types of fixed period settlements: immediate and deferred. An immediate settlement means that the policyholder will receive the full amount of the death benefit, minus any outstanding loans or premiums that are owed. A deferred settlement means that the policyholder will receive the death benefit minus any outstanding loans or premiums that are owed, plus interest.
The main advantage of a fixed period settlement is that it gives the policyholder certainty about when they will receive their money.
All of the following entities regulate variable life policies except