Which of the following factors affects the amount of each installment paid in a Life Income Option?

The amount of each installment paid in a Life Income Option is influenced primarily by the recipient's life expectancy and the amount of principal. This option involves a set amount paid regularly to the beneficiary for their lifetime. The insurance company calculates the installment amounts based on actuarial tables that estimate how long the recipient is expected to live, meaning that a longer life expectancy would typically result in smaller installment payments since the total amount is distributed over a more extended period. Additionally, the principal amount, which is the total value of the policy or settlement, directly affects how much can be paid out regularly; a larger principal results in higher installments, whereas a smaller principal leads to lower payments. The combination of these two elements—life expectancy and principal—plays a crucial role in determining the size of the payments made to the recipient under this option.