What happens with the remaining balance of the death proceeds if a life insurance beneficiary dies after receiving only six payments under the policy's life income settlement option?

In the context of a life insurance policy's life income settlement option, if a beneficiary receives payments but then passes away before fully utilizing the total death benefit, the remaining balance typically gets retained by the insurance company. This is because the life income settlement option is structured to provide the beneficiary with guaranteed payments for their lifetime, rather than a lump sum payout. Once the beneficiary has received payments under this arrangement, the contract specifies that any remaining funds do not revert to the insured's estate or other beneficiaries but are kept by the insurer in accordance with the terms of the settlement option selected. This ensures that the insurance company has fulfilled its obligation to provide income to the designated beneficiary for their lifetime, and once that beneficiary is no longer alive, the remaining amounts do not pass on but remain with the company.