Which of the following options allows the insurer to provide proceeds as interest payments over time?

The option that allows the insurer to provide proceeds as interest payments over time is the interest-only option. This arrangement typically occurs after the insured's death when the policyholder's beneficiaries are designated to receive the insurance payout. Instead of receiving the total death benefit in a lump sum, the beneficiaries have the choice to take the proceeds in a manner that the insurer holds the principal amount, while the insurer pays out the interest earned on that principal.

This method is advantageous for beneficiaries who may not wish to manage a large sum of money all at once. It allows for a more gradual distribution of benefits and can provide a steady stream of income through the interest payments generated, enhancing the financial security of the recipients over time.

The other options mentioned do not specifically focus on this continual interest disbursement. The lump sum option delivers the entire benefit at once, the fixed period option provides payments for a set duration, and the settlement option offers various choices for how benefits can be disbursed, but none are solely focused on receiving interest payments as the primary mechanism.