Which settlement option allows a life insurance policy's beneficiary to receive monthly payments for as long as they live?

The life income option is designed specifically to provide a steady stream of income to a beneficiary for the duration of their life. With this settlement choice, the insurance company commits to paying out a predetermined amount regularly, typically on a monthly basis, until the death of the beneficiary. This approach ensures that the beneficiary has a source of income that can help them manage their expenses without the risk of outliving the funds, as payments will continue for their entire lifetime.

In contrast, the fixed period option specifies a certain time frame during which payments are made, regardless of whether the policyholder or beneficiary lives beyond that period. The cash settlement option involves a one-time lump-sum payment of the policy's face value instead of ongoing payments, which does not provide the security of lifelong income. Finally, the interest-only option allows the beneficiary to receive only the interest earned on the policy proceeds while the principal remains intact, again not offering the guaranteed lifetime payments that the life income option does. Thus, the life income option stands out as the choice focused on providing lifelong financial support.