Life Income option
The life income option is a settlement option under which the insurance company agrees to pay the policy proceeds in periodic installments over the payee's life time. As we have seen, both the fixed amount and fixed period options provide installment payments for only a limited time. On the other hand, the life income option provides a permanent source of income for the payee, even though this method of settlement typically results in smaller installment payments than would available under the fixed amount or fixed period options.