If the primary beneficiary of a life insurance policy does not see a settlement option stated in the policy, who gets to select the settlement option?

In situations where the primary beneficiary of a life insurance policy does not find a specific settlement option outlined in the policy, it is typically the beneficiary who has the authority to choose the settlement option. This is because the beneficiary holds the interest in the insurance benefit once the insured person passes away.

The options available for settlement can include different methods such as a lump sum payment, annuities, or installment payments, and the beneficiary can select one that best meets their financial needs and preferences. This choice underscores the principle that the beneficiary has rights to the policy benefits, allowing them some control over how they receive this financial support.

While the policy owner may have set the terms of the policy and the insurer administers the policy's payouts, the decision regarding the settlement option ultimately rests with the beneficiary in this particular scenario. This ensures that the provider of the insurance benefit aligns with the needs of those intended to receive the financial support.