Which option in life insurance policies allows for a portion of the death benefit to be paid out initially and the rest later?

The option that allows for a portion of the death benefit to be paid out initially, with the remainder distributed at a later time, is the life income benefit. This feature is designed to provide ongoing financial support to the beneficiary, often in the form of regular payments over their lifetime. Upon the insured's death, the insurer will typically pay a lump sum upfront which can help cover immediate expenses, and then provide an income stream that sustains the beneficiary financially over a longer period.

This option is particularly beneficial for those who want to ensure that their beneficiaries have immediate access to some funds while also providing a steady income that can help manage costs in the years following the insured's passing. This structure can assist in planning for long-term financial needs, especially for dependents who may rely on consistent income.

In terms of the other options, while they offer various payout structures, they do not combine immediate and delayed benefits in the same way as life income. For instance, a fixed amount might provide set payments but would not necessarily include an initial payout. Similarly, a one-year term primarily focuses on annual coverage rather than the distribution of death benefits, and an accelerated endowment allows for earlier access to benefits but does not typically involve partial payout arrangements like the life income feature