Life · Chapter 6 · Settlement Options
Life Income with Period Certain
Definition
Lifetime income, PLUS: if the beneficiary dies before a set period (e.g., 10 years), payments continue to a secondary payee for the remainder of the period. If they outlive the period, nothing passes on.
Exam tip
The longer the guaranteed period, the LOWER the monthly payment.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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