Which of the following are considered basic settlement options in life insurance?

Basic settlement options in life insurance generally refer to the various methods through which a policyholder or their beneficiaries can receive the death benefit proceeds. These options are designed to cater to different financial needs and preferences.

The term and whole life options relate to types of life insurance policies rather than settlement options. They refer to the duration of coverage provided by the policy but do not indicate how the death benefit will be disbursed.

Fixed period and interest options are indeed recognized as basic settlement options. The fixed period option allows the death benefit to be paid out over a specified period, while the interest option permits the beneficiary to receive interest on the death benefit left with the insurer, essentially delaying the withdrawal of the principal amount.

Options for cash surrender value pertain to the ability of the policyholder to surrender a permanent life insurance policy for its cash value instead of opting for a payout typically related to death benefits. This concept is more about accessing accumulated value than how the death benefit is settled.

Since the focus is on basic settlement options, terms like fixed period and interest options fit the definition accurately as they outline how the benefits can be received after the policyholder’s death. Therefore, the overall concept suggests that basic settlement options encompass various strategies for beneficiaries to receive benefits, making