What does the life with period certain option ensure?

The life with period certain option provides a combination of lifetime income payments along with a guaranteed payment period. Specifically, it ensures that the policyholder will receive payments for their entire life but also guarantees that at least a specified minimum number of payments will be made, regardless of when the policyholder passes away within that time frame.

For instance, if a policyholder chooses a life with period certain option with a 10-year guarantee and they pass away after 5 years, the insurer must continue to make payments to the designated beneficiary for the remaining 5 years. This structure provides financial security by protecting against the risk of dying early, while still offering the advantage of lifetime income.

The other options do not capture this dual guarantee of lifetime payments combined with a minimum payment period, which is the defining feature of this option. Therefore, the correct interpretation clearly emphasizes the assurance of continued payments for life paired with a guaranteed period.