You will receive the largest monthly payment under an annuity contract when the annuity disbursement option is the:
A)life annuity with no refund.
B)life annuity for a certain period.
C)refund annuity.
D)annuity certain.
E)temporary life annuity.

Question

Quizplus · Accepted Answer

A life annuity with no refund typically offers the largest monthly payment because it does not provide any benefits after the annuitant's death, thus concentrating the available funds into the annuitant's lifetime.

You Will Receive the Largest Monthly Payment Under an Annuity