What does the Fixed Amount option in life insurance provide to the beneficiary?

The Fixed Amount option in life insurance delivers a series of payments to the beneficiary at a predetermined amount until the total benefits, including both the face amount and any interest accrued, are completely exhausted. This approach allows the beneficiary to receive consistent financial support over time, which can help in managing expenses or planning for future needs. The payments continue until the balance is depleted, ensuring that the beneficiary receives the full value intended by the policyholder.

In contrast to options that might provide a lump sum or variable payments, the Fixed Amount option is straightforward and offers predictability for beneficiaries, making it an appealing choice for those seeking stability and a structured financial support system following the policyholder’s passing.