Primerica Life Producer Practice Test

What type of settlement option pays throughout the lifetimes of two or more beneficiaries?

1. Level premium

2. Joint and Survivor

3. Single lump sum

4. Fixed period

The correct answer is: Joint and Survivor

The Joint and Survivor settlement option is designed specifically to provide ongoing payments for the lifetimes of two or more beneficiaries. This means that the benefits will continue as long as one of the beneficiaries is alive, ensuring financial support for the remaining partner or beneficiary. This option is particularly beneficial for couples or individuals who want to ensure that their loved ones continue receiving payments even if one passes away. In contrast, the level premium option is related to the payment structure of the insurance premiums and does not pertain to settlement options. The single lump sum option would provide a one-time payout that does not offer the continuation of benefits over time. Lastly, the fixed period option pays benefits for a specific period, regardless of the beneficiaries' lifetimes, which does not serve the purpose of providing ongoing payment throughout the life of two or more individuals. Thus, the Joint and Survivor option is the correct answer, as it encapsulates the essence of continuous payment for multiple beneficiaries throughout their lives.