Which of the following statements is (are)true with respect to a joint-and-survivor annuity?
I.Some joint-and-survivor annuities reduce the income payment after the first annuitant dies.
II.No payments are made after the first annuitant dies.

Question

Quizplus · Accepted Answer

Some joint-and-survivor annuities reduce the income payment after the first annuitant dies in order to ensure that the surviving annuitant continues to receive income for the rest of their life. Option II is incorrect because payments do continue after the first annuitant dies, but they may be reduced.

Which of the Following Statements Is (Are)true with Respect to a Joint-And-Survivor