How to Choose the Right Settlement Option for Your Life Insurance Policy
What Settlement Option Did Fred Choose for His Life Insurance Policy?
Fred owns a 40-Pay Life Policy and designated his wife, Ethel, as the primary beneficiary. Upon Fred's death, Ethel will receive a set amount for life. Which Settlement Option did Fred choose?
Final answer:
Fred chose the Life Income Only settlement option in his 40-Pay Life Policy, ensuring his wife Ethel receives a set amount for life after his death.
From the details provided in the question, it seems that Fred selected the Life Income Only settlement option for his 40-Pay Life Policy. This type of insurance policy payout ensures that Ethel, the primary beneficiary, will receive a certain amount of income for the rest of her life after Fred's death. This settlement option is commonly chosen by policyholders who want to ensure their beneficiaries have a guaranteed income source for their lifetime.