Which option is a settlement option for death benefit?

• A. Cash only
• B. Cash, interest only, installment options, fixed period, fixed amount
• C. A single payment is required
• D. Proceeds are always kept in a trust

Answer: (B)

Settlement options describe how a death benefit can be paid to a beneficiary. The best answer lists the standard set: cash (a lump-sum payment), interest-only (the proceeds are kept and only the interest is paid out), and various installment options. These installments can be arranged as a fixed period (payments for a specified number of years) or as a fixed amount (payments of a set dollar amount until the funds are exhausted). This range covers the common ways beneficiaries receive funds after a claim.

A single payment is not required because there are multiple permissible methods beyond lump-sum cash, and proceeds are not always kept in a trust—trusts are not mandatory and are used only in specific situations or by choice.