A beneficiary wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should be chosen?

The cash option provides the entire death benefit as a lump sum payment to the beneficiary. While this option offers immediate access to the full amount, it does not allow the benefit to accumulate interest. Therefore, it does not align with the beneficiary's desire to receive only monthly investment proceeds.

The fixed amount option provides the beneficiary with a specified dollar amount each month until the death benefit is exhausted. While it allows for periodic payments, it does not focus on accumulating interest on the entire death benefit, which is contrary to the beneficiary's intention of letting the benefit grow while receiving interest.

This option pays the beneficiary a fixed amount over a specified period. Similar to the fixed amount option, it does not allow the death benefit to accumulate interest, as it focuses on distributing the total benefit within a set timeframe. This fails to meet the beneficiary's wish for monthly proceeds derived from the interest rather than the principal.