New York State Life Insurance Exam Questions Practice Question
If an annuitant dies during the accumulation period, his or her beneficiary will receive
Correct Answer: A
Rationale: During the accumulation period of an annuity, if the annuitant dies, the beneficiary is entitled to receive the greater of the accumulated cash value or the total premiums paid. This ensures that the beneficiary receives a fair return on the investment, protecting against potential losses.
Option B is incorrect as it suggests the beneficiary would receive the lesser amount, which does not align with the protective nature of annuities. Option C is incorrect because beneficiaries are entitled to some form of payment upon the annuitant's death. Option D is also incorrect, as beneficiaries typically receive only one of the two amounts, not both.
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