What will the beneficiary receive if an annuitant dies during the accumulation period?

• A. The death benefit
• B. The greater of the accumulated cash value or the total premium paid
• C. The cash value only
• D. The premium refund only

Answer: (B)

During the accumulation period, the contract builds cash value from the premiums paid. If the annuitant dies in this phase, the beneficiary is guaranteed a death benefit equal to the greater of the cash value or the total premiums paid. This ensures the beneficiary recoveries either what has accumulated or at least the amount originally paid, whichever is higher, protecting against loss if the cash value hasn’t grown much or if the contract has charges. For example, if you paid 100,000 in premiums but the cash value is 90,000 at death, the beneficiary gets 100,000. If the cash value is 120,000, the beneficiary gets 120,000. The other options don’t reflect this guaranteed minimum or the comparison between cash value and premiums paid.