Which statement regarding the joint and survivor life insurance settlement option is incorrect?

The statement regarding the joint and survivor life insurance settlement option that is considered incorrect is that each installment is larger than the single life income option. This is not accurate, as the payments under a joint and survivor option are typically lower than those offered through a single life option. This reduction occurs because the total benefit must be spread out over the lifetimes of both beneficiaries, ensuring that payments continue for both until the last one passes away.

In contrast, the single life income option is designed to provide larger installments to a single beneficiary, reflecting the fact that the payment ceases upon their death. The goal of the joint and survivor option is to provide financial support for both beneficiaries for as long as either one is alive, which inherently requires a reduction in the amount of each installment compared to a single life payout.

Other statements about the joint and survivor life insurance settlement option highlight its features accurately. The benefit does continue until both beneficiaries have passed away, and while it is commonly available to married couples, it can also sometimes be structured for other pairs of individuals.