Definitions for "Fixed amount option"
A type of death benefit settlement option in a life insurance policy that pays the death benefit in a series of fixed amounts. The death benefit is left on deposit with the insurance company and earns interest. The insurance company makes payments of the specified amount until the benefit and interest has been exhausted.
A life insurance proceeds settlement option whereby the amount of monthly payment is set or fixed by the policyowner. The number of payments is determined by the amount of proceeds. (An example would be electing to receive $1,000 a month for as long as the proceeds last.)
(1) A life insurance policy settlement option under which the insurer pays equal installments of a stated amount until the policy proceeds, plus the interest earned, are exhausted. See also settlement options. (2) An annuity payout option under which the insurer determines the length of time that the annuity's accumulated value will provide a pre-selected periodic payment. See also payout options.