If a beneficiary wants a guarantee that benefits paid from principal and interest would last for 10 years, what settlement option should the beneficiary select?

Choosing the fixed period option is the most appropriate choice for a beneficiary seeking a guarantee that benefits, including both principal and interest, would last for 10 years. This option allows the beneficiary to receive payments over a specified period, in this case, 10 years, ensuring a regular disbursement of funds throughout that time frame.

With the fixed period option, the insurance company calculates the total benefit amount and divides it into equal payments over the selected period. This provides the beneficiary with both the security of receiving assured payments for that duration and the peace of mind that the funds will be distributed within the guaranteed time frame, regardless of whether the beneficiary lives for the entire period.

The life income option, on the other hand, pays benefits for the beneficiary's lifetime, which might not guarantee a specific payout duration like 10 years. The fixed amount option allows the beneficiary to choose a set amount to receive at regular intervals, but it does not assure that the payments would last exactly 10 years, as the funds could be depleted before that time if the chosen amount is too high. The interest only option simply pays out the interest earned on the principal without touching the principal, which does not meet the requirement of providing total benefits for a defined period of 10