What settlement option did J choose if he receives fixed benefit payments from his late wife's policy and any remaining benefits go to a contingent beneficiary upon his death?

The chosen settlement option indicates that J receives fixed benefit payments from his late wife's life insurance policy. This aligns with the fixed amount settlement option, where the insurer pays a predetermined dollar amount to the beneficiary until the total death benefit is exhausted. In this scenario, if there are remaining benefits after J's death, those are transferred to a contingent beneficiary, which is a key characteristic of the fixed amount choice.

This option allows the beneficiary to receive a steady flow of payments while also ensuring that any remaining balance does not simply disappear upon the beneficiary’s death, but instead passes on to another designated recipient. This is important for financial planning and provides ongoing support without the need for an immediate lump sum payout.

Other options, such as a life annuity, would not yield fixed payments that could transfer to a contingent beneficiary since they are designed to provide income for the lifetime of the annuitant only. Similarly, periodic payments might imply more flexible withdrawal amounts rather than fixed amounts, and cash surrender would mean ending the policy for a lump sum, not involving ongoing payments at all. Thus, the context of J's situation and the mechanics of the insurance payment structure clearly point to the fixed amount as the correct answer.