Which settlement option guarantees payments for the recipient's lifetime with a specified period for continued payments to a designated beneficiary?

The settlement option that guarantees payments for the recipient's lifetime with a specified period for continued payments to a designated beneficiary is known as "life income with period certain." This option ensures that the recipient will receive income for as long as they live, offering a safety net of guaranteed payments for a predetermined period, typically a range of 5 to 30 years. If the recipient passes away before the end of this specified period, the designated beneficiary will continue to receive payments for the remainder of that period, ensuring that the funds do not go unused and providing financial security for the beneficiary.

This option is valuable for individuals concerned about outliving their resources; it balances the need for lifetime income with the assurance that beneficiaries are also protected. It is particularly suitable for policyholders who want to ensure that their loved ones financially benefit if they pass away prematurely.

In contrast, while "life income" provides payments for the recipient's lifetime without any option for a beneficiary, it does not guarantee payments to heirs after the recipient's death. "Fixed amount" options provide regular payments of a specified dollar amount but lack the lifetime guarantee. "Joint and survivor" arrangements are designed for two individuals, ensuring continued payments to the survivor, but they do not focus on the guarantee of payments