A specified period of years is selected, and equal installments are paid to the recipient; payments will continue for the specified period even if the recipient dies before the end of that period; the longer the period selected, the smaller the payments.

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The situation describes a fixed-period, or period-certain, settlement option. Here, the proceeds are paid out in equal installments for a set number of years, and if the recipient dies before that period ends, the remaining payments still go to a beneficiary. The total amount being paid is fixed, so extending the period means spreading those payments over more years, which makes each installment smaller. This contrasts with a life-income arrangement, which pays only while the recipient is alive and ends at death (unless a period-certain feature is added). It also isn’t about fixed-amount installments, which specify a fixed dollar amount per payment but don’t inherently guarantee continuation for a defined period after death unless a period-certain provision is included. A one-year term is just a specific short period, not the general concept that longer periods reduce the payment size.