Which annuity option guarantees a fixed number of payments regardless of whether the annuitant is alive?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Which annuity option guarantees a fixed number of payments regardless of whether the annuitant is alive?

The concept being tested is how different annuity payout options guarantee payments. A life annuity pays only while the annuitant is alive, and it ends at death. A fixed or variable annuity describes how much is paid and the investment risk, not how long payments last. A life annuity certain combines life-contingent payments with a guaranteed minimum number of payments. It ensures the specified number of payments will be made regardless of whether the annuitant is alive, with any remaining payments potentially continuing to a beneficiary if death occurs before the period ends. That’s why this option best fits a guarantee of a fixed number of payments.

Which annuity option guarantees a fixed number of payments regardless of whether the annuitant is alive?

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Which annuity option guarantees a fixed number of payments regardless of whether the annuitant is alive?

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