Settlement option that pays income for life of the beneficiary is:

The settlement option that pays income for the life of the beneficiary is Life Income. This option provides a steady stream of income, ensuring that the beneficiary receives payments for as long as they live. This is particularly beneficial for individuals who want financial security throughout their lifetime, as it eliminates the risk of outliving their resources. The payments can sometimes be structured to include additional features, such as a guarantee period or joint life options, but the core benefit remains that the income continues as long as the beneficiary is alive.

In contrast, other options serve different purposes. Interest Only allows the beneficiary to receive only the interest earned on the principal amount for a certain period, which may not provide adequate long-term financial support. Fixed Amount pays a predetermined amount until the total benefit is exhausted, which could run out before the beneficiary's lifetime ends. Fixed Period provides payments for a set time regardless of the beneficiary's lifespan, potentially leaving them without funds if they live beyond that period. Life Income is distinct in its focus on providing lifelong financial support.