The settlement option in which the company acts as trustee and pays interest to the beneficiary is called:

Understand the Problem

The question is asking for the name of a specific settlement option in which a company acts as a trustee and pays interest to a beneficiary. This involves understanding various settlement options related to trust or insurance policies.

More Information

When proceeds are left with the company, the insurance provider acts as trustee. They hold the death benefit and pay interest to the beneficiary, allowing the principal to remain with the insurer.

Tips

Be aware that this option pays only interest on the retained proceeds, not the principal amount.

Sources

• Finance Quiz - Quizlet - quizlet.com
• Solved The settlement option - Chegg - chegg.com
• Glossary of insurance terms - TruStage - trustage.com