Definition of "Fixed Period Option"

A life insurance proceeds settlement option whereby the number of payments is fixed by the policy owner. The amount of each payment is determined by the amount of proceeds. (An example would be electing to receive benefits for a specified period of time, such as ten years; the amount of each payment is then based on the amount of principal and projected earnings.)

A type of death benefit settlement option in a life insurance policy that pays the death benefit over a specific period of time. The death benefit is left on deposit with the insurance company and earns interest. The insurance company makes payments of a fixed amount until the benefit and interest has been exhausted.