Which term describes the settlement option that provides a lifetime income to the recipient?

Which term describes the settlement option that provides a lifetime income to the recipient?

• A. Single life option
• B. Life-income option
• C. Fixed-amount installments
• D. Interest only option

Answer: (B)

Life-income option is the term for a settlement option that provides a lifetime income to the recipient. Its defining feature is that payments continue for as long as the recipient lives, giving financial security against outliving funds. The other options describe arrangements that end after a set period, are fixed in amount, or pay only interest for a period, none of which guarantees income for the recipient’s entire life.

Life-income option is the term for a settlement option that provides a lifetime income to the recipient. Its defining feature is that payments continue for as long as the recipient lives, giving financial security against outliving funds. The other options describe arrangements that end after a set period, are fixed in amount, or pay only interest for a period, none of which guarantees income for the recipient’s entire life.