When a policyowner specifies an exact dollar amount for installments, which settlement option have they chosen?

When a policyowner specifies an exact dollar amount for installments, they have chosen the fixed amount settlement option. This option allows the policyowner to determine a specific amount of money that will be paid out at regular intervals until the total value of the death benefit or cash value is exhausted. The fixed amount guarantees that a predetermined sum will be dispensed, regardless of how long it takes to use up the policy's value.

This option provides the policyowner with control over the payouts, making it a straightforward way to manage the financial benefit. The amount specified remains consistent throughout the payout period, giving the policyowner predictability in their financial planning. The fixed amount option is particularly appealing for those who wish to ensure regular, manageable payments to beneficiaries or dependents over time.

Other options, such as life income or joint and survivor, focus on providing income for the lifetime of the beneficiary or multiple beneficiaries, respectively, rather than specifying a fixed dollar amount for a predetermined period. Period certain may involve payouts for a certain number of years, but it typically doesn't provide the flexibility of choosing an exact dollar amount for each installment. Thus, the correct identification of the fixed amount option captures the essence of the question about specifying an exact dollar amount for installments.