Practice Quiz

Health and Life Insurance

Category - Annuities & Policies

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What type of option would allow Erica to receive a set monthly payment of principle and interest until fully depleting her husband’s policy?
  1. Life income option
  2. Fixed amount option
  3. P & I option
  4. Life certain income option
Explanation
Answer: B - The type of option Erica has that allows her to receive principal and interest payments from her husband’s policy until fully depleted is the fixed amount option. The fixed amount option sets a specified amount of each payment, the principal amount, and earnings or interest that the beneficiary will receive. Beneficiaries receive a payment that is the same each month until all of the proceeds are depleted.
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