What option allows a policyowner to receive a death benefit in fixed installments over a specified period?

The option that allows a policyowner to receive a death benefit in fixed installments over a specified period is the fixed-period settlement option. This arrangement is designed to provide beneficiaries with a steady stream of income for a predetermined duration following the policyholder's death. The fixed installments can help the beneficiaries manage their finances by providing regular payments that can be budgeted for expenses or savings.

This approach to disbursing benefits offers clarity and security, as the policyholder may wish for their loved ones to have a structured payout that enables them to maintain financial stability during a difficult time. The specifics of the installments, including the amount and the duration of the payout period, are typically selected at the time the policy is taken out or can be chosen by the beneficiaries after the claim is made.

In contrast, permanent insurance and term insurance relate more to the type and duration of coverage. Permanent insurance provides lifelong coverage, while term insurance offers protection for a specified period without guaranteed payouts if the insured survives the term. The accelerated benefit is a feature that allows policyholders to access a portion of the death benefit early if they are diagnosed with a terminal illness, but it does not pertain specifically to fixed installments over time.