Generally,the period-certain settlement option is desirable because life insurance companies pay higher than average interest rates.

Question

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The period-certain settlement option may not necessarily provide higher interest rates as compared to other options. This option simply guarantees a fixed payment for a specified period of time, regardless of whether the beneficiary is alive or not. Other factors such as current interest rates, inflation, and other economic conditions may also affect the interest rates offered by life insurance companies.

Generally,the Period-Certain Settlement Option Is Desirable Because Life Insurance Companies