Which of the following statements about life insurance policy settlement options is NOT correct?
A) Under the fixed-period option, the payment of excess interest will lengthen the payment period.
B) Debra and Renee are each receiving monthly income from their deceased spouses' identical life insurance policies under the fixed-period option. Debra's payments are to be made for 15 years and Renee's for 20 years. Debra receives the larger monthly payments.
C) By using the interest-only option, 2 or more settlement options can be combined for added flexibility.
D) Payments under the interest-only option may be made at a rate higher than the guaranteed minimum."
Ans: A) Under the fixed-period option, the payment of excess interest will lengthen the payment period.
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