What is the primary purpose of a fixed period settlement option?

The primary purpose of a fixed period settlement option is to provide a guaranteed income for a certain amount of time. Under this arrangement, the beneficiary receives regular payments over a specified period, such as a number of years. This feature ensures that the beneficiaries have a predictable income stream for that set timeframe, allowing them to plan their finances accordingly.

The fixed period settlement option is particularly advantageous for those who prefer a structured payment schedule rather than a lump sum. This can help beneficiaries manage their expenses more effectively and provide financial security during a transitional period after the death of the policyholder. It is important to note that while this option guarantees payments for a defined time, it does not extend beyond that period, distinguishing it from methods that provide lifelong income.