Agnes and Mary Clare,two elderly sisters,own an annuity covering both of their lives.The annuity pays benefits to them until the first sister dies,then the annuity terminates.Agnes and Mary Clare own a(n)

Question

Quizplus · Accepted Answer

The correct answer is a joint life annuity because it pays benefits until the first person (of the two covered lives) dies, at which point the annuity terminates. This is characteristic of a joint life annuity, which is designed to cover two or more lives but ceases payment upon the first death among the insured parties.

Agnes and Mary Clare,two Elderly Sisters,own an Annuity Covering Both