What is typically included in the settlement options of a life insurance policy?

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Settlement options in a life insurance policy refer specifically to the methods that the insurer will use to pay the death benefit to beneficiaries after the insured's death. These options can include various strategies, such as a lump-sum cash payment, an annuity payment that spreads benefits over time, or even installment payments. The goal of these options is to provide beneficiaries with flexibility in how they receive the funds, which can be crucial for managing their financial situation.

The other choices do not pertain directly to how the death benefit is paid out. Investment recommendations would be related to financial planning but not specifically a part of the life insurance settlement options. Strategies for policy loans involve borrowing against the policy’s cash value during the insured's lifetime rather than focusing on the disbursement of benefits. Discounts on future premiums relate to pricing and policy maintenance rather than the settlement process. Thus, the focus on methods of providing death benefits makes the correct answer definitive in context.

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