What is a settlement option that pays benefits throughout the lifetimes of two or more beneficiaries called?

The term that refers to a settlement option designed to pay benefits throughout the lifetimes of two or more beneficiaries is known as "Joint and Survivor." This option is specifically structured to ensure that payments continue to be made as long as at least one of the beneficiaries is alive. Typically, this arrangement is used in situations such as joint life insurance policies or retirement plans, providing a steadier stream of income or benefit payments for the beneficiaries involved.

By choosing the Joint and Survivor option, the policyholder ensures financial security for their beneficiaries, regardless of how long each individual lives. Once the first beneficiary passes away, the payments continue to the surviving beneficiary, which underscores the design's emphasis on lifetime income for multiple parties. This option stands in contrast to others like Survivor Benefit or Payable Upon Death, which may not focus on the lifetime aspect for multiple beneficiaries or may be limited in scope.

Flexibility in the benefit structure, referenced in the last option, does not accurately convey the specific mechanism of ongoing payments throughout the lifetimes of more than one beneficiary, setting the Joint and Survivor option apart as the most fitting label for this type of arrangement.