Which of the following is the settlement option of a life policy that provides periodic payments of a specified amount as long as the proceeds plus interest last?

The correct choice highlights the fixed amount settlement option in a life insurance policy, where the beneficiary receives periodic payments of a predetermined amount until the policy proceeds, along with any accumulated interest, are fully disbursed. This option allows the beneficiary to have a steady income stream over a period of time, providing them with financial support while also managing the proceeds efficiently.

With this option, the total amount paid will depend on the selected payment amount and the interest that the insurance company earns on the remaining balance. This means if the beneficiary chooses a lower fixed payment, the payments may last for a longer duration, but if a higher amount is chosen, the payments will be distributed more quickly until the policy proceeds are exhausted.

The other choices include options that don't align with this specific payout structure. The interest option typically involves the insurance company holding funds while the beneficiary earns interest, rather than receiving fixed payments. The life income option pays a benefit based on the beneficiary's life expectancy, ensuring they receive ongoing payments, but without a fixed amount predetermined. The fixed period option pays out the policy proceeds over a specified time frame, regardless of the amount of interest accrued, but it does not guarantee that the payments will be of a fixed amount until the funds are exhausted.