A life annuity that pays nothing to the beneficiary after the annuitant dies is called a ________ annuity.

Question

Quizplus · Accepted Answer

A straight life annuity pays only for the life of the annuitant and does not provide any payments to the beneficiary after the annuitant's death. Option A, period certain annuity, guarantees a set number of payments regardless of whether the annuitant is alive or not. Option C, refund annuity, pays the beneficiary the difference between the total premiums paid and any payments received if the annuitant dies before receiving the full amount of premiums paid. Option D, joint-and-last-survivor annuity, pays until the death of the last surviving annuitant in a partnership, and payments cease afterward.

A Life Annuity That Pays Nothing to the Beneficiary After