Which term best describes a plan where the withdrawal amount is determined by the investor's lifespan?

The term that best describes a plan where the withdrawal amount is determined by the investor's lifespan is known as a life withdrawal plan. This type of plan typically takes into account the investor's estimated life expectancy to establish a withdrawal strategy that aims to provide an income stream for the duration of their life. This approach is particularly important in retirement planning, as it helps ensure that retirees do not outlive their savings while still allowing for reasonable withdrawals over time.

In contrast, a fixed period withdrawal plan specifies a certain time frame for withdrawals, regardless of the investor's lifespan. A capital preservation plan focuses on maintaining the principal amount of the investment, which may not prioritize income generation based on lifespan. An income maximization plan, while focused on generating the highest possible income, does not necessarily adjust withdrawals according to life expectancy. Therefore, a life withdrawal plan is the most suitable choice in this context.