Janet is the beneficiary of her uncle’s $200,000 life insurance policy

Janet is the beneficiary of her uncle’s $200,000 life insurance policy. When her uncle died, Janet selected a settlement option that pays monthly benefits for as long as she lives.

If Janet dies before receiving $200,000, payments will continue to a contingent beneficiary until a total of $200,000 has been paid. What settlement option did Janet select?
A) joint-and-survivor annuity
B) life income with guaranteed total amount
C) life income with guaranteed period
D) fixed amount option

ANSWER

Answer: B