The life income joint and survivor settlement option guarantees what to recipients?

The life income joint and survivor settlement option is designed to provide ongoing income to two or more recipients for the duration of their lives. This means that as long as at least one of the recipients is alive, they will continue to receive payments. This settlement option is particularly beneficial for couples or partners, as it ensures that the survivor will not face a loss of income upon the death of the other recipient. The nature of this option is rooted in the concept of joint survivorship, where the arrangement supports the financial needs of both parties as long as one of them remains living.

By contrast, the other options focus on different aspects of payment structures. While equal payments may be a concern in some financial arrangements, the joint and survivor option specifically addresses longevity and continuous income rather than uniformity in payment amounts. Payment of interest on death proceeds relates to how interest might accumulate on the insurance policy proceeds but does not guarantee income for recipients over their lifetimes. Payout of the entire death benefit refers to the complete distribution of the policy amount upon death, which does not encapsulate the promise of ongoing income that the joint and survivor option provides. Thus, the correct choice reflects the fundamental purpose of guaranteeing income for two or more recipients until they pass away.