CARD Q054
An annuity pays for life with a 15-year certain period. The annuitant dies after 6 years. What does the guarantee provide?
- Payments only through the month of death
- Payments for a new 15-year period after death
- A refund of all original premiums in addition to prior payments
- Payments for the remaining 9 years to the designated recipient
Payments for the remaining 9 years to the designated recipient
The certain period runs from the original income start. If the annuitant outlives 15 years, life payments continue.
Why each choice is right or wrong
A. Payments only through the month of death
Incorrect. The certain-period guarantee protects the remaining period after death.
B. Payments for a new 15-year period after death
Incorrect. The 15-year period starts with payments; it does not restart at death.
C. A refund of all original premiums in addition to prior payments
Incorrect. The guarantee continues remaining scheduled payments, not all premiums in addition.
D. Payments for the remaining 9 years to the designated recipient
Correct. The certain period runs from the original income start. If the annuitant outlives 15 years, life payments continue.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.