What is another term for the cash payment settlement option?

The cash payment settlement option is often referred to as a lump sum. This term means that the policyholder or beneficiary receives the entire death benefit in one single payment rather than in installments. This option is typically chosen for its immediacy and simplicity, allowing the recipient to use the funds as needed without being subject to the terms of ongoing payment structures as would be the case with an annuity or interest payout. The lump sum payment offers financial flexibility and can be used for various purposes such as paying debts, making investments, or covering living expenses.

The other terms mentioned, such as interest payout, monthly annuity, and partial withdrawal, refer to alternative settlement methods or options that involve distribution over time or specific withdrawals rather than a straightforward single cash payment. Such methods might not provide the same immediate liquidity that a lump sum does.