What is another term for the cash payment settlement option?

The cash payment settlement option is often referred to as a lump sum. This term indicates that the beneficiary, upon the insured's death, will receive a single payment of the total death benefit as opposed to receiving it in installments or through other settlement methods. This option is straightforward and provides immediate access to the full amount of the insurance policy, allowing the beneficiary to use the funds as needed without waiting for future payments.

Other terms like principal amount and face amount typically refer to the original value or coverage amount of the policy rather than the settlement method. The term proceeds is more general and can refer to the entire amount received from a life insurance policy, but it doesn’t specifically imply the method of payment, such as a lump sum. Thus, lump sum is the most accurate and commonly used term to describe the cash payment settlement option in life insurance contexts.