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.

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