His wife (or the nominee) can opt to take half the amount as lumpsum immediately and the remaining 50 % as monthly income (starting from next Policy Anniversary after the date of death) increasing at 8.50 % p.a. (simple rate) every year starting from the policy anniversary following the date of death. (maxlifeinsurance.com)
Instead of taking the entire amount as lump sum, she plans to opt for the Settlement Option 2 where she will get Rs. 50 Lacs as lump sum immediately after death and the remaining Rs. 50 Lacs as monthly income (starting from next Policy Anniversary) increasing at 8.50 % p.a. (simple rate) every year starting from the policy anniversary following the date of death. (comparepolicy.com)
1 The maximum loan value is the cash value as of the date of the loan, less any existing loan and accrued interest and interest on indebtedness from the date of the loan to the next policy anniversary date. (sagicorlifeusa.com)