What is the primary benefit of an installment payment option for death benefits?

The primary benefit of an installment payment option for death benefits is that it enables regular payments over time. This approach allows beneficiaries to receive the death benefit in smaller, manageable amounts rather than as a single lump sum. By spreading the benefit out over a specified period, it can help the beneficiaries manage their finances more effectively, ensuring that they have a steady source of income to cover ongoing expenses, rather than receiving a large sum all at once, which might be spent quickly or mismanaged.

Regular payments can be particularly advantageous in situations where beneficiaries may not have the financial experience or discipline to manage a lump sum, helping to prevent the premature depletion of funds. Additionally, this option can offer a sense of financial security, knowing that they will continue to receive support over time rather than facing the potential uncertainty of one-time payouts.