New York State Life Insurance Exam Questions Practice Question
An annuity that guarantees a given number of income payments, whether or not the annuitant is alive to receive them, is referred to as
Correct Answer: A
Rationale: An annuity that guarantees a specific number of income payments, regardless of the annuitant's survival, is best described as a life annuity certain. This type ensures payments for a predetermined period, ensuring beneficiaries receive funds even if the annuitant passes away before the term ends.
Option B, an assured life annuity, typically provides payments for the lifetime of the annuitant, not guaranteeing payments beyond their life. Option C, a guaranteed survivor annuity, focuses on providing benefits to a survivor after the annuitant's death, rather than guaranteeing payments during a fixed term. Option D, an irrevocable endowed annuity, involves a different structure, often tied to life insurance features, rather than fixed income payments.
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