Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under the fixed period settlement option, the beneficiary receives:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The fixed period option divides the proceeds, plus the interest they earn, into equal installments paid over a stated number of years. The amount of each installment is computed so the principal and interest are exhausted exactly at the end of the period. It is one of the settlement options in objective LIFE-II.E.9, distinct from life income (lifetime), fixed amount (level payments until exhausted), and lump sum.
Why the other options are wrong
- B) Variable, market-tied payments are not a fixed period option; these are level installments.
- C) Lifetime payments describe the life income option, not a fixed period.
- D) A single payment describes the lump-sum option.
Memory hook
Fixed period = equal installments until the pot runs dry on schedule.