Which of the following payout options would provide an annuity owner with the biggest monthly check?

Question

Quizplus · Accepted Answer

The straight life payout option would provide an annuity owner with the biggest monthly check. Under this option, the annuity payments stop upon the death of the owner. All of the other options would require that the insurance company stand ready to continue payments beyond the owner's death. This means more risk to the insurance company and, ergo, lower payments to the owner.

Which of the Following Payout Options Would Provide an Annuity