Policy Options - Settlement Options (CLIFF) Flashcards
1
Q
Cash Payment (Lump Sum)
A
Not taxable to beneficiary
2
Q
Life Income
A
Pays guaranteed installments as long as the recipient lives. Principle is forfeited upon death. Principle is made up of principal and interest;
Interest is taxable
3
Q
Fixed Period
A
Deplete funds over a fixed period
4
Q
Fixed Amount
A
Fix amount until proceeds are exhausted
5
Q
Interest Only
A
Temporary option, until proceeds are paid. Interest is taxable
