Question

Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments for _______.

A. Life
B. 4 years
C. 10 years
D. 6 years

Answer 1

B. 4 years

Step-by-step explanation:

Based on the information given about Tom in which we were been told that he elects the Life Income with a 10 year settlement option in which Tom dies in year 6, this means that

the beneficiary receives payments for 4 years calculater as:

Life Income 10 year Period- The year it took Tom to die which is year 6 which will eventually give us 4 years.

Therefore beneficiary receives payments for 4 years.