Mortality Guarantee — which of the following best describes it?

Mortality Guarantee — which of the following best describes it?

• A. A fixed withdrawal period guarantee
• B. A death benefit guarantee
• C. A basic settlement option guarantee to continue annuity payments for as long as the annuitant lives, even beyond life expectancy
• D. The prospectus

Answer: (C)

Mortality guarantee means the insurer promises to continue paying annuity income for as long as the annuitant is alive, even if that extends beyond the expected life span. This is a life-contingent feature that shifts longevity risk to the insurer, ensuring the annuitant won’t outlive the income. It’s a basic settlement option aimed at lifetime income. It isn’t about a fixed withdrawal period, a death benefit in a life insurance policy, or the prospectus, which is why the description focusing on continuing payments for life is the best fit.

Mortality guarantee means the insurer promises to continue paying annuity income for as long as the annuitant is alive, even if that extends beyond the expected life span. This is a life-contingent feature that shifts longevity risk to the insurer, ensuring the annuitant won’t outlive the income. It’s a basic settlement option aimed at lifetime income. It isn’t about a fixed withdrawal period, a death benefit in a life insurance policy, or the prospectus, which is why the description focusing on continuing payments for life is the best fit.