Skip to main content
Securian Financial Home

Benefit distribution agreement

The Benefit Distribution Agreement (BDA) provides your clients a settlement option for their beneficiaries to receive all or part of the policy’s total benefit amount as a guaranteed monthly or annual benefit over a specified installment period.

BDA is available exclusively through eApp on Advantage Elite Select term policies.


  • Potentially lower premium payments while maintaining desired total benefit amount1
  • Provide beneficiaries a total benefit amount that exceeds the policy face amount1

1. Total benefit amount is the total of the lump-sum payment plus installment payments. Total benefit amount will exceed the face amount of the policy, and the amount exceeding the face amount will be taxable as income. Not all scenarios will result in lower premium payments.


  • Offered exclusively through eApp
  • Minimum face amount: $100,000
  • No additional cost
  • Only available at policy issue
  • Total benefit amount allocated to installment payments must be 25%, 50%, 75% or 100%
    • Payment options: Monthly or annually
    • Installment periods: 10, 20 or 30 years
    • All installment payments will be equal
  • Benefit amount not allocated to installment payments will be paid as a lump sum
  • Conversions into permanent policies will be based on face amount
  • Schedule of payments determined at issue and may not be altered
  • BDA can be removed from policies and the death benefit will equal the face amount


Products with the Benefit Distribution Agreement:

Next steps

Additional resources available on our secured site

Get access to these and other tools on our secured website for financial professionals.

The beneficiary of the policy will not be able to change the installment portion of the death benefit after the death of the insured. A portion of the benefit that is paid out in installments will be taxable as income. This taxable portion represents the amount of the benefit that exceeds the policy’s face amount.

The Benefit Distribution Agreement installment payment could be payable for a period up to 30 years. The factor rate used in the calculation of the installment payment is set at the time of policy issue.

Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements. 

Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.

Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods.

Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.

Insurance products issued by Minnesota Life Insurance Company / Securian Life Insurance Company

Policy form numbers:  ICC14-20000, 14-20000 and any state variations; ICC16-20047, 16-20047 and any state variations

The information presented above is solely intended for use by financial professionals. Such information is not intended for public consumption or dissemination.

For financial professional use only. Not for use with the public. This material may not be reproduced in any form where it is accessible to the general public.

DOFU 12-2022