Which type of annuity stops all payments upon the annuitant's death?

• A. Life annuity certain
• B. Joint and survivor annuity
• C. Deferred annuity
• D. Life Annuity

Answer: (D)

A life annuity is designed to pay out for the lifetime of the annuitant and then stop at death. In this type, there’s no continuation of payments to a beneficiary after the annuitant dies, unlike other forms that extend payments beyond death or delay them.

To contrast briefly: a joint and survivor annuity continues payments after one person dies, to the surviving person; a life annuity certain guarantees payments for a set period even if the annuitant dies early (payments may go to a beneficiary for the remainder of that period); a deferred annuity postpones payments to a future date. Therefore, the one that ends when the annuitant dies is the life annuity.