Which life insurance settlement option pays a stated monthly payment until both principal and interest are exhausted?

The fixed amount installment option pays a specified monthly payment until both the principal and interest are fully exhausted. This method allows the beneficiary to receive consistent payments over time, which can assist in budgeting and financial planning. The fixed amount is predetermined, and as payments are made, both the principal and any accrued interest are gradually reduced until there is nothing left to distribute.

This option is particularly appealing to beneficiaries who want a stable income over a set period without the risk of outliving the funds, as they know exactly how much they will receive each month until the benefits are depleted. By contrast, other options outlined, such as the life income option or interest-only option, provide payments based on different structures or contingencies that may not align with the desire for consistent, predictable installments until the entire benefit amount is utilized.