In a fixed period option, what is paid to the recipient?

In a fixed period option, the recipient is paid equal installments over a specified period of years. This option is designed to provide a consistent cash flow to the beneficiary for a predetermined duration. The total amount of the death benefit is divided into equal payments that are distributed at regular intervals—such as monthly, quarterly, or annually—over the chosen fixed period.

This structure allows the beneficiary to receive a steady income stream rather than a one-time lump sum, which may be advantageous for budgeting and financial planning purposes. Furthermore, once the fixed period concludes, payments stop, and there are typically no further benefits provided unless the policy has specific provisions for that situation.

The other options describe different methods of payout that do not align with the fixed period option. Lump sum payments involve receiving the entire amount at once, while lifetime income provides payments for the lifetime of the recipient, ensuring they never outlive the benefits. Joint income would imply payments to multiple recipients, which is a different arrangement altogether. The fixed period option clearly focuses on regular, equal installments over a defined timeframe.