When a policyowner specifies a dollar amount for installments, which settlement option have they chosen?

The chosen option describes a scenario where a policyowner indicates a specific dollar amount for receiving payments from their life insurance policy. This arrangement is known as a fixed amount settlement.

In a fixed amount settlement, the insurance company pays out the policy benefits in predetermined installments until the total benefit amount is exhausted. This approach allows the policyowner to have control over how much they receive in each payment, providing a clear expectation of cash flow over time.

The other settlement options you might consider serve different purposes. For instance, the life income option guarantees payments for the lifetime of the beneficiary, ensuring income as long as they live but without specifying a fixed dollar amount for each installment. The interest accumulation option typically involves the policy's cash value growing with interest, instead of providing regular payments. Lastly, a regular income option could imply a consistent payment period but does not specifically define a predetermined dollar amount per installment like the fixed amount settlement does. Thus, the clarity and control offered by a fixed amount settlement specifically aligns with the question's criteria.