Question

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose

Answer 1

J chose the settlement option known as contingent beneficiary, where the remaining benefits will go to a designated person or entity if J dies before receiving all the benefits.

Step-by-step explanation:

J chose the settlement option known as contingent beneficiary. In this option, if J dies before receiving all the benefits, the remaining amount will go to a designated person or entity called the contingent beneficiary. This ensures that the benefits will be transferred to the contingent beneficiary in the event of J's death. For example, J may have chosen his child or a trust as the contingent beneficiary.