Life Income Period Certain describes distributions that are made for the recipient's lifetime or a specified period, whichever lasts longer.

Life Income Period Certain describes distributions that are made for the recipient's lifetime or a specified period, whichever lasts longer.

• A. Distributions are limited to a fixed number of years
• B. Distributions are made for the lifetime of the recipient or a specified period, whichever is longer
• C. Distributions begin after retirement with fixed payments
• D. Distributions depend on annual investment performance

Answer: (B)

This option blends lifetime income with a minimum guarantee. You receive payments for the recipient’s lifetime, but if the recipient dies before the guaranteed period ends, payments continue to a beneficiary for the remainder of that period. If the recipient lives beyond the guaranteed period, payments keep going for life. In other words, the payout lasts for the longer of the two: the person’s life or the specified period. For example, with a 10-year period certain, if the person dies after 6 years, the beneficiary gets the remaining 4 years; if they live to year 12, payments continue for life. This distinguishes it from a pure fixed-term payment (which ends after a set number of years regardless of life) and from payments that depend on investment performance or start with fixed schedules.

This option blends lifetime income with a minimum guarantee. You receive payments for the recipient’s lifetime, but if the recipient dies before the guaranteed period ends, payments continue to a beneficiary for the remainder of that period. If the recipient lives beyond the guaranteed period, payments keep going for life. In other words, the payout lasts for the longer of the two: the person’s life or the specified period. For example, with a 10-year period certain, if the person dies after 6 years, the beneficiary gets the remaining 4 years; if they live to year 12, payments continue for life. This distinguishes it from a pure fixed-term payment (which ends after a set number of years regardless of life) and from payments that depend on investment performance or start with fixed schedules.