What is life income with period certain?

• A. Payments continue for life only
• B. Payments continue for life and are guaranteed for a specified period if the recipient dies early
• C. A lump-sum upfront payment
• D. A fixed-period payment for a term

Answer: (B)

Life income with period certain blends lifetime payments with a guaranteed minimum payout period. You receive payments for as long as you live, but if you die before the end of a chosen guarantee period, payments continue to a beneficiary for the remainder of that period. If you live beyond the guarantee, payments continue for life. This structure protects the annuitant with ongoing income while also providing a payout to heirs if death happens early.

This is why the option describing payments for life with a guarantee for a specified period if death occurs early is the best fit. It’s not just a life-only arrangement (which ends at death), not a lump-sum (one-time payout), and not a pure fixed-period annuity (which pays for a set term regardless of survival).