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When you buy Mortgage Insurance, there are many different ways that your beneficiaries can receive their death benefits. These payouts can help them manage the death benefit proceeds better than they could on their own and can also add a safety net of guaranteed income over a certain period of time, which may help them sustain their current way of living.
Death Benefit Payout Options
Option 1: Lump Sum—Your loved ones may choose to receive a lump sum payment, which is a single payment of the entire death benefit amount.
Option 2: Annuity Payouts—If your beneficiaries would prefer to space out the payments, then they can choose a payout option similar to an annuity. Some examples include: