Payout options affect life expectancy and payments; which statement is true?

Payout options affect life expectancy and payments; which statement is true?

• A. They have no effect on the total payments.
• B. They are designed to maximize tax efficiency regardless of life expectancy.
• C. They guarantee the same total payments under all options.
• D. They use mortality assumptions and can impact total expected payments and survivor benefits.

Answer: (D)