What is true regarding fixed-period and fixed-amount settlement options?

The correct answer highlights that both fixed-period and fixed-amount settlement options guarantee the total payout of the principal and interest. This means that when a beneficiary selects either of these settlement options, they are assured that they will receive the full amount of the death benefit along with any accumulated interest, regardless of how long it takes to disburse that amount.

In a fixed-period settlement, the benefit is paid out over a predetermined period, while in a fixed-amount settlement, specified payments are made until the entire benefit is exhausted. In both cases, the total amount received, including both principal and interest, is guaranteed, which provides financial security to the beneficiary.

The other considerations regarding the options help clarify why they do not apply. For instance, neither of these options is dependent on the age of the insured; rather, they are based on the terms selected by the beneficiary at the time of settlement. Additionally, these options do not require periodic premium payments, as they are settlements of an existing life insurance policy rather than ongoing insurance coverage. Finally, while beneficiaries usually have certain choices regarding the payment method, the options themselves do not inherently allow for a choice of beneficiary in the context of how the settlement is disbursed.