Which life insurance settlement option pays lifetime benefits to two or more people?

The joint and survivor settlement option is designed to provide lifetime benefits to two or more individuals, typically a couple. This option ensures that as long as one of the insured individuals is alive, the benefits will continue to be paid. When the first person passes away, the surviving individual will receive benefits for their remaining lifetime.

This choice is particularly beneficial for couples who rely on each other's income for financial stability, as it ensures continuous support and protection for the surviving partner. This contrasts with other options that may not provide ongoing payments to both individuals, leading to potential gaps in financial support after the passing of one.

For example, a joint payout option usually involves an immediate payment upon the death of one insured but does not guarantee payments until the death of the second individual. On the other hand, level term insurance and fixed annuities do not align with the idea of providing lifetime benefits to multiple beneficiaries, as they are structured differently concerning timelines and payout mechanisms.