The payment of the entire benefit in one sum is called what?

Prepare for the Primerica Insurance Licensing Exam efficiently. Study with quizzes and multiple choice questions, each with detailed explanations. Get exam-ready!

Multiple Choice

The payment of the entire benefit in one sum is called what?

One-time, full payout. The term for paying the entire benefit in a single sum is lump-sum. This option provides immediate access to the full amount of the death benefit (or settlement value) rather than spreading payments over time. Cash value refers to the policy’s cash surrender value or amounts you can borrow against, not how the benefit is paid in full. Solvency is about the insurer’s ability to meet obligations, and survivor protection relates to coverage that benefits survivors—not the payment method.

One-time, full payout. The term for paying the entire benefit in a single sum is lump-sum. This option provides immediate access to the full amount of the death benefit (or settlement value) rather than spreading payments over time. Cash value refers to the policy’s cash surrender value or amounts you can borrow against, not how the benefit is paid in full. Solvency is about the insurer’s ability to meet obligations, and survivor protection relates to coverage that benefits survivors—not the payment method.

More practice questions