life income option

Definition of "life income option"
  1. A choice regarding insurance settlement where the insurance company keeps the policy benefits and makes regular payments for the designated recipient's life or for a pre-determined number of years beyond the recipient's death, with payments then switching to another recipient
How to use "life income option" in a sentence
  1. The policyholder chose a life income option for their policy, ensuring consistent payments to their beneficiary that would continue after their passing.
  2. With the life income option, the insurance company makes regular payments to the beneficiary for a fixed duration, even if the beneficiary passes away during that period.
  3. Life income option provides the beneficiary with a stream of payments throughout their life, with the payments continuing for a specified period to a different recipient if the initial beneficiary dies.

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