Which life insurance settlement option pays installments while the beneficiary is alive and stops upon death?

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The option that pays installments while the beneficiary is alive and stops upon death is the single life annuity. This type of annuity is specifically designed to provide income for a single individual throughout their lifetime. Payments cease once the annuitant (the individual receiving the payments) passes away, making it a suitable choice for beneficiaries looking for stable income during their lifetime without a payout continuing after their death.

In contrast, the other options often incorporate different structures or guarantees that extend beyond the life of the annuitant. For instance, a life annuity with period certain would provide guaranteed payments for a specified period, regardless of whether the annuitant is alive or not, ensuring that if the annuitant dies early, payments will continue to a beneficiary for the remainder of that period. A joint and survivor annuity engages two lives and guarantees payments for as long as either of the individuals is alive, which means payments would continue after the first death. Lastly, a life annuity with cash refund includes a provision that would return any remaining balance to a beneficiary if the annuitant dies before the total amount of premiums paid has been reciprocated through payments.

Understanding these nuances helps clarify that a single life annuity is the most straightforward option for payments only while