Which settlement option pays a stated amount to the annuitant but provides no residual value to a beneficiary?

• A. Fixed amount
• B. Life income
• C. Period certain
• D. Life annuity

Answer: (B)

When an annuity owner selects a settlement option, one choice guarantees payments for the life of the annuitant but provides no leftover value to a beneficiary. This is the life income option, sometimes called life-only. It ensures the annuitant receives payments for as long as they live, but once the annuitant dies, there’s nothing left to pass on to a beneficiary.

The other options either lock in payments for a fixed period or guarantee that some remaining value or payments will go to a beneficiary if death occurs early, which is why they don’t fit the requirement of “no residual value to a beneficiary.”