Which of the following is NOT a method of receiving life insurance settlement benefits?

The method of receiving life insurance settlement benefits that is not commonly recognized is extended term installments. Typically, settlement options for life insurance benefits include cash, fixed-period installments, and interest-only payments.

When beneficiaries choose cash, they receive a lump sum payout directly, which provides immediate access to funds. Fixed-period installments allow the beneficiary to receive payments over a specified period, ensuring a steady income stream for a designated time. Interest-only payments mean that the insurance company pays the interest on the death benefit while the principal remains intact, offering the beneficiary time to determine the best use of the actual benefit.

Extended term installments, on the other hand, typically refer to a policy option where the death benefit is used to purchase term insurance coverage for a specified period rather than providing the benefits directly to the beneficiary. This option is less common and isn't classified as a method of settlement for received benefits.