L&HNJmedium
Which New Jersey life insurance settlement option pays a guaranteed income for the beneficiary's lifetime with no period-certain guarantee?
AFixed-period option
Pure life income (straight life) option
CFixed-amount option
DInterest-only option with guaranteed principal held by the insurer indefinitely
Why this is the answer
Among standard NJ settlement options, the pure (straight) life income option pays the largest periodic amount but ceases at the beneficiary's death with no refund or guarantee, so early death forfeits the remaining proceeds.
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