Which statement describes Life Income with Period Certain?

Which statement describes Life Income with Period Certain?

• A. Annuity settlement option that pays for the life of the annuitant only
• B. Annuity option that guarantees payments for a fixed period only
• C. An insurance and annuity settlement option in which payments continue to the longer of the annuitant's life or a selected period, with payments to a named beneficiary if the annuitant dies before the period ends
• D. A deferred annuity created with a single purchase payment

Answer: (C)

Life Income with Period Certain blends lifetime income with a safeguard for a minimum period. The payments are designed to continue for as long as the annuitant lives, but if the annuitant dies before the end of a chosen period, payments then continue to a named beneficiary for the remainder of that period. If the period ends before the annuitant dies, payments continue only for as long as the annuitant is alive. This combination provides both longevity protection and a death benefit to a beneficiary for the guaranteed period. This differs from other options that either pay only for life with no beneficiary continuity, or only for a fixed period with no life contingency, or describe a product type rather than a settlement option.

Life Income with Period Certain blends lifetime income with a safeguard for a minimum period. The payments are designed to continue for as long as the annuitant lives, but if the annuitant dies before the end of a chosen period, payments then continue to a named beneficiary for the remainder of that period. If the period ends before the annuitant dies, payments continue only for as long as the annuitant is alive. This combination provides both longevity protection and a death benefit to a beneficiary for the guaranteed period.

This differs from other options that either pay only for life with no beneficiary continuity, or only for a fixed period with no life contingency, or describe a product type rather than a settlement option.