If an insured selects a joint and 2/3 survivor settlement option, what benefit does the surviving beneficiary receive?

In a joint and 2/3 survivor settlement option, the surviving beneficiary receives a benefit based on a proportion of the total benefit that was designated for both individuals when they were alive. Specifically, the concept behind this option is that upon the death of the first beneficiary, the surviving beneficiary continues to receive a portion of the benefit, which is two-thirds in this case.

This type of settlement option is designed to provide financial security for the surviving individual, ensuring they receive a continuing income post the loss of their partner. Therefore, option A reflects that the surviving beneficiary would indeed receive 2/3 of the benefit that was intended to be paid while both beneficiaries were alive.

The other options present different interpretations of the payout structure. For example, some suggest variations of lump sum payments or changes in benefit distribution upon the death of one beneficiary, which do not accurately align with the joint and 2/3 survivor structure. Understanding the specific mechanism of the joint and survivor option is crucial in recognizing the benefit distribution correctly.