What determines the length of time that benefits will be received under the Fixed Amount settlement option?

The Fixed Amount settlement option in a life insurance policy allows beneficiaries to receive benefits in regular, predetermined installments until the total benefit amount is exhausted. The length of time over which these benefits are received is primarily determined by the size of each installment chosen by the beneficiary.

This means that if a beneficiary selects a higher installment amount, the total benefits will be depleted more quickly, resulting in a shorter payment period. Conversely, choosing a smaller installment will stretch the payment duration, allowing benefits to last longer.

Other factors, such as the predetermined length of time, length of the income period, and amount of interest, can play a role in how benefits are disbursed but do not directly define how long the payments will continue under this specific option. The crux of the Fixed Amount settlement is how the installment size impacts the total duration of benefit payments received.