Primerica Life Producer Practice Test

Which life insurance settlement option ensures payments for the lifetime of the recipient, with a guaranteed period for payments to continue to a designated beneficiary if the original recipient dies?

1. Life Income Option

2. Life Income with Period Certain

3. Fixed Amount Option

4. Interest Only Option

The correct answer is: Life Income with Period Certain

The Life Income with Period Certain settlement option is designed to provide guaranteed income for the lifetime of the recipient. This means that the recipient will receive payments for as long as they live, ensuring financial security throughout their lifetime. Additionally, it includes a guaranteed period, which means that if the recipient passes away during this specified period, payments will continue to a designated beneficiary for the remainder of that guaranteed time. This feature provides both the original recipient and their beneficiaries a measure of security and guarantees that the funds are not lost if the original recipient dies early in the designated period. This option balances lifelong income with beneficiary protection, making it an appealing choice for individuals looking to provide for their loved ones while ensuring they also receive lifetime support. Other options may not provide this dual benefit of lifetime payments combined with a guaranteed period for beneficiaries, which is why Life Income with Period Certain stands out uniquely in addressing these needs.