Which settlement option only pays the interest on the death benefit, keeping the principal intact?

The interest only settlement option is designed to pay the beneficiary only the interest earned on the death benefit while keeping the principal amount intact. This means that the original amount of the death benefit remains accessible for future use, while the beneficiary receives periodic interest payments. The principal remains preserved, providing a steady source of income over time without depleting the total amount.

In contrast, the fixed amount and fixed period options distribute both principal and interest over a set period or amount, ultimately exhausting the total value of the death benefit. The life income option provides payments for the lifetime of the beneficiary but also involves the distribution of the principal over the lifespan, which eventually can lead to the depletion of funds. Therefore, the interest only option is distinct in its mechanism of preserving the original principal while providing income through interest earnings.