How do fixed-period installments pay out to the beneficiary?

Fixed-period installments pay out to the beneficiary by distributing the death benefit over a predetermined timeframe, such as 5, 10, or 20 years. This means that instead of receiving the entire death benefit in a lump sum, the beneficiary receives regular payments at fixed intervals for the length of the specified period. This can provide a steady income stream and help manage the funds over time.

In this context, the other options do not accurately describe the nature of fixed-period installments. For instance, a one-time cash payment, while a common option in life insurance, does not reflect the installment nature of this approach. Additionally, accumulated interest pertains to the growth of funds in certain accounts but does not define how the payout occurs. Lastly, monthly premium payments refer to the payments made during the policy's active period rather than the disbursement of the death benefit. Therefore, the correct understanding of fixed-period installments is that they are designed to pay out over a defined period of time, benefiting the beneficiary's financial planning.