Question

Tom is the beneficiary and is concerned about both running out of money during his lifetime and at the same time leaving funds behind to the insurer. Looking for some time period guarantee, Tom should consider the _________ settlement option.

Answer 1

lifetime annuity with period certain settlement option

Step-by-step explanation:

Based on the specifications that Tom is looking for, he should consider the lifetime annuity with period certain settlement option. This is an annuity that pays a benefit to the annuitant until death, but with a period certain option, the estate's beneficiary will continue to receive annuity payments until the specified timeframe of the period certain expires. Which would meet the requirements that Tom is looking for.