What payment options are available with CT life insurance?
When your CT life insurance policy is paid out, there are several ways that your beneficiaries can receive their benefits. The way that the money is paid out will depend on the type of pay-out you have opted for in your policy.
The most common type of life insurance pay-out is a lump sum payment, where the entire pay-out is made at once. This is a popular choice as it allows your beneficiaries immediate access to a large sum of money that may be required to pay off large debts such as a mortgage, or to help meet immediate costs such as funeral expenses.
Because some people find it a challenge to carefully manage large amounts of money, a staggered pay-out option may be your preferred method of payment. There are fixed period and fixed amount options. The first involves a series of payments made over a specified amount of time, whereas the second involves a series of payments made over time until a set amount is reached.
Another option for your life insurance payout is a life income stream, where the death benefit is used to buy an annuity for the beneficiaries of your insurance policy over the duration of their lives.
