CARD Q053
An annuitant chooses life-only income with no refund or guaranteed period. What happens to payments when the annuitant dies?
- Payments continue until the original premium has been recovered
- The unpaid purchase premium is refunded to the beneficiary
- They stop
- Payments continue for a minimum ten-year period
They stop
Life-only income lasts for the annuitant’s life. Refund and period-certain guarantees must be selected separately if offered.
Why each choice is right or wrong
A. Payments continue until the original premium has been recovered
Incorrect. Recovery of the premium is not guaranteed under life-only with no refund provision.
B. The unpaid purchase premium is refunded to the beneficiary
Incorrect. A refund feature was expressly excluded.
C. They stop
Correct. Life-only income lasts for the annuitant’s life. Refund and period-certain guarantees must be selected separately if offered.
D. Payments continue for a minimum ten-year period
Incorrect. A guaranteed period was expressly excluded.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.