Life · Chapter 6 · Settlement Options
Life Income Option
Definition
Liquidates proceeds with a life contingency: guaranteed installments for as long as the beneficiary lives — income they cannot outlive. Funded by the insurer buying a single premium immediate annuity (SPIA). Payment size depends on the principal and the beneficiary's age, sex, and life expectancy.
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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