If the beneficiary wants a guarantee that police proceeds will be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
Fixed period
If the beneficiary wants a guarantee that police proceeds will be paid for a period of 10 years before being exhausted, the settlement option that the beneficiary should select is the “life income with period certain” option.
Under this settlement option, the beneficiary will receive a guaranteed income for their entire life. Additionally, the beneficiary can choose a period of time during which the benefits will be paid out, even if the beneficiary passes away before the selected period ends. In this case, the beneficiary should choose a period of 10 years, which means that if they pass away before the end of the 10-year period, the remaining payments will continue to be paid to their designated heirs or estate until the period ends.
This option provides the beneficiary with both a lifetime guarantee of income and the added security of knowing that there is a minimum payout period of 10 years.
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