Life Policy ProvisionsQuestion 160 of 315
A beneficiary wants guaranteed equal payments for the next 20 years, even if she dies before that period ends, with any remaining payments going to her estate. Which settlement option meets this need?
a.Life with refund
b.Straight life income
c.Interest only
d.Fixed period
Explanation
The fixed-period option pays the proceeds (with interest) in equal installments over a stated number of years. If the payee dies before the period ends, the remaining guaranteed payments continue to the contingent payee or estate.
Law Reference: Cal. Ins. Code §10168Practice all 315 questions free — no signup required.
Related questions on this topic
- If an insured dies by suicide 18 months after the policy was issued, how is the death claim typically handled under the standard California suicide clause?
- If an applicant misstates their age on a life insurance application and the error is discovered after death, what action does the misstatement-of-age provision require?
- Under which settlement option does the insurer retain the death benefit and pay only the earnings on it to the beneficiary at regular intervals?
- Which life-income settlement option provides the largest periodic payment to a single beneficiary, but stops entirely at that beneficiary's death with no refund?
- Which nonforfeiture option uses the cash value of a lapsed permanent policy to keep the same face amount in force as term insurance for as long as the cash value will last?
- An owner of a lapsed whole life policy elects the reduced paid-up nonforfeiture option. What is the result?
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)