Settlement option

Method in which a policyholder or beneficiary may choose to have an insurance policy’s proceeds paid.
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An option in an insurance policy as to the form in which a claim may be settled. Thus, in property insurance, the insurer may commonly choose whether to pay, replace or make good.

Settlement options

Methods of payments of life insurance policy proceeds to the beneficiary by an insurance company such as a lump sum or periodic payments.
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US: The several ways, other than immediate payment in cash, which a policyholder or beneficiary may choose to have policy benefits paid.