Which of the following statements about fixed amount options is true?

The statement that beneficiaries are provided with a fixed payment until the cash runs out is accurate for fixed amount options. In this type of settlement option, the insurance company pays out a specific dollar amount to the beneficiaries, and these payments continue until the total death benefit is fully disbursed. This ensures that the beneficiaries receive consistent and predictable financial support over time, making it a reliable option for managing the payout of life insurance proceeds.

This choice highlights the intent behind fixed amount options: to provide a steady stream of income that helps beneficiaries manage their finances after the policyholder's passing while also being straightforward in its structure. By defining the fixed payment amount, it alleviates concerns about fluctuating incomes that can accompany other payout options.

The other options address different aspects of life insurance payout methods. For instance, the idea that payment amounts can vary each month applies to different payment structures that do not provide the predictability associated with fixed amounts. Similarly, the assertion that a guaranteed payout is offered for a set number of years pertains more to period certain options rather than fixed amount payouts. Lastly, the applicability to all life insurance policies notes that not every policy necessarily includes every payout option, but this does not pertain directly to the nature of fixed amount options