Which settlement option allows a beneficiary to receive a fixed amount through an annuity?

The fixed-amount installment option is a settlement method that provides a beneficiary with a predetermined and consistent amount of money over time, typically through an annuity arrangement. This option is particularly advantageous for beneficiaries who want a steady income stream rather than receiving a lump-sum payment. By establishing fixed amounts, the insurer guarantees that the beneficiary will receive these payments at regular intervals until the principal is exhausted or until a specific term is reached. This can be especially beneficial for managing financial needs and providing long-term security.

In contrast, other options may offer different benefits or structures. For example, the life income option generally guarantees payments for the lifetime of the beneficiary but does not provide a fixed amount in the same way that installments do—it may vary based on life expectancy. Cash payment results in a lump-sum distribution, which may not suit those looking for ongoing support. The one-year term option usually pertains to a temporary coverage strategy and does not align with the concept of structured fixed payments through an annuity.

Thus, the fixed-amount installment option uniquely fulfills the requirement of providing a consistent income stream through a structured payout plan.