Under the fixed amount option, there are three factors that determine how long a payee will receive payments. The factors assist in establishing the periodic installments ahead of time. Which of the following is not one of these factors?

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The capital amount is not one of the three factors used to determine how long a payee will receive payments. Under the fixed amount option, the payments are established ahead of time and will continue until the principal and interest are fully depleted. Unlike the fixed period option, the fixed amount option does not specify the length of time the payee will receive payments. Fixed amount options simply use a specified amount, the principal or amount of policy proceeds, and the interest earned on the principal to determine the payments.

Under the Fixed Amount Option, There Are Three Factors That