What does a joint and 2/3 survivor settlement option imply for beneficiaries?

A joint and 2/3 survivor settlement option indicates how life insurance benefits will be distributed among multiple beneficiaries. Specifically, this option ensures that if both insured individuals are alive, the surviving beneficiary receives 2/3 of the total death benefit upon the death of one of the insured individuals. This arrangement is designed to provide a continued income stream to the surviving beneficiary while acknowledging the contribution and financial support from both insured parties.

In this scenario, because the structure allows for continued benefits to the survivor after the death of one individual, it highlights a collaborative approach towards financial management within the policy. It's essential for the beneficiary to recognize that they are guaranteed to receive a significant portion of the benefit (2/3) as long as both parties are alive and, upon the death of one, the agreed portion continues.

Other options do not accurately capture the specific terms outlined in this settlement option. For example, the implication that the full benefit is received by the survivor is incorrect, as it specifically stipulates a two-thirds benefit post-death. Similarly, dividing benefits equally or forfeiting the benefit does not reflect the mechanics of this settlement option and its intended support for the surviving beneficiary.