What does the life income option provide to the beneficiary?

The life income option is a specific payout method in life insurance policies or annuities that guarantees the beneficiary will receive payments for their entire lifetime. This means that once the insured individual passes away, the designated beneficiary begins receiving regular income payments that will continue until their own death. This option is designed to provide financial security to the beneficiary, ensuring that they have a steady income stream regardless of how long they live.

This income can be especially beneficial for individuals who rely on the deceased for financial support or who are concerned about outliving their assets. By selecting the life income option, the beneficiary is effectively ensured an income for life, which can help with ongoing living expenses and provide peace of mind.

In contrast, the other options do not align with this definition. A lump-sum payment upon death would mean receiving a one-time payment instead of ongoing income. Payments until they choose to stop suggests a level of control over the payment duration, which is not applicable in the life income scenario since the payments continue for the beneficiary’s life. Thus, the life income option distinctly emphasizes the concept of lifetime payments, which is why that answer is the most accurate representation of what this option provides.