The allowance of money to be paid in accordance with the foregoing provisions of this Division may be paid:
     (a) from a fund created and maintained out of the corporate revenues of such city or village in such manner as the corporate authorities may direct, or
     (b) by means of group insurance taken out by such city or village for the benefit of the families or dependents of policemen and firemen in a regularly accredited legal reserve life insurance company with premiums to be paid out of the corporate revenues of the city or village.