Pennsylvania Life and Health Insurance Exam Practice Question
A life annuity ceases payments to the annuitant at
Correct Answer: A
Rationale: A life annuity provides income for the duration of the annuitant's life, meaning payments end upon their death (Option A). Maturity (Option B) refers to the end of a contract term, which does not apply to life annuities. Policy termination (Option C) generally indicates cancellation by the insurer or policyholder, not a natural endpoint of the annuity. Age 100 (Option D) is not a standard limit for life annuities, as payments continue until the annuitant passes away, regardless of age. Thus, only Option A accurately reflects the nature of a life annuity.
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