Which option allows policyowners to receive payments periodically rather than a lump sum?

The interest-only option allows policyowners to receive periodic payments rather than a lump sum. This option is typically utilized after the death of the insured, where the death benefit is paid out but the beneficiary chooses to receive only the interest that accumulates on the death benefit amount. This arrangement provides a steady stream of income over time, rather than a one-time payment, which can be beneficial for financial planning and managing expenses.

The cash value option, while providing access to the accumulated cash value of a life insurance policy, does not specifically refer to periodic payments; instead, it allows the policyowner to withdraw or borrow against the cash value. The viatical settlement involves selling a life insurance policy for a lump sum, usually when the insured is terminally ill, which contrasts with the periodic payment structure. The endowment option typically refers to a type of policy designed to pay a lump sum at the end of a specified term or upon the insured's death, rather than providing ongoing, regular payments.