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A beneficiary may elect among standard settlement options. Compared with a Straight Life Income option (no period certain), a Life Income with 10-Year Period Certain on the same face will pay:

AA larger monthly benefit, because adding the 10-year period-certain feature meaningfully reduces the insurer's longevity exposure across the life of the contract
A smaller monthly benefit, because the insurer guarantees at least 10 years of payments to a contingent payee even if the annuitant dies early
CExactly the same monthly benefit, because the 10-year period-certain guarantee is layered on by the insurer at no additional actuarial cost to the payee
DA larger guaranteed single lump sum paid out at the end of the 10-year certain period in place of the ongoing regular monthly income payments

Why this is the answer

Standard settlement options convert lump-sum death proceeds into a stream of payments. The five common options are: (1) Interest Only (proceeds held, interest paid); (2) Fixed Period (proceeds liquidated over a stated number of years); (3) Fixed Amount (stated monthly amount paid until proceeds exhaust); (4) Life Income / Life Annuity (payments for life of payee); (5) Joint and Survivor Life Income. Life Income sub-variants include Straight Life (largest monthly benefit, no refund or guarantee), Life with Period Certain (smaller monthly because insurer guarantees minimum payment count), and Life with Refund/Installment Refund (guarantees total payments at least equal proceeds).

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