How the beneficiary (or owner) can receive the death benefit:

1. Lump sum (cash): paid all at once. The usual default when no option was chosen. 2. Interest only: the insurer keeps the principal and pays interest monthly or yearly; the principal is paid out later. The interest is taxable. 3. Fixed period: payments last for a chosen number of years. The period determines the size of each payment. 4. Fixed amount: a chosen payment continues until principal and interest run out. The amount determines how long payments last. 5. Life income: payments for as long as the payee lives. Variations include life with period certain, life with refund, and joint and survivor, which keeps paying the surviving spouse.

Spendthrift clause: not a payout option but a protective provision used with installment options. The beneficiary cannot assign, borrow against or commute future payments, and the proceeds are protected from the beneficiary's creditors before they are paid out.