Final answer:
The life insurance settlement option that pays lifetime benefits to two or more people is called a joint and survivor annuity. This option ensures that payments continue for the duration of both individuals' lives, and if one person dies, the surviving person will receive the benefits.
Step-by-step explanation:
The life insurance settlement option that pays lifetime benefits to two or more people is called a joint and survivor annuity.
Under this option, the insurance company will continue to pay benefits for the duration of the lives of both individuals. If one person dies, the payments will continue to the surviving person for the rest of their life.
For example, let's say a married couple purchases a joint and survivor annuity. If one spouse passes away, the remaining spouse will continue to receive the benefits until they pass away as well.