What does the life income option allow a policyholder to do?

The life income option is designed specifically to provide financial stability and security to the policyholder by ensuring they receive regular payments for the rest of their life. This option is particularly beneficial for individuals who want to guarantee a steady income stream during retirement or in instances where they may outlive their original investment or benefits.

When a policyholder selects this option, they essentially trade in their death benefit for guaranteed income payments, which can be structured in different ways: for instance, payments could continue until the individual passes away or there could be options for survivor benefits to a spouse. This structure supports long-term financial planning, offering peace of mind that one's basic living expenses can be covered.

The other options present possibilities that do not align with the specific mechanics of the life income option. Converting a policy to a paid-up policy relates to the policy's status rather than providing ongoing payments. Similarly, withdrawing cash value involves accessing funds from a policy rather than creating a payable income stream. Finally, transferring ownership pertains to legal rights associated with the policy, which is unrelated to the concept of receiving life-long payments.