Pennsylvania Life and Health Insurance Exam Practice Question
What annuity payout option has no additional payouts regardless of when the annuitant dies?
Correct Answer: D
Rationale: The "Life only" option guarantees payments only during the annuitant's lifetime, with no further payouts to beneficiaries upon death, making it the only option with no additional payouts.
Option A, "Installment refund," provides payments for a minimum period, ensuring beneficiaries receive any remaining balance if the annuitant dies early.
Option B, "Life certain," guarantees payments for a specified period, even if the annuitant dies before the term ends, allowing for payouts to beneficiaries.
Option C, "Cash refund," returns any remaining balance to beneficiaries upon the annuitant's death, ensuring additional payouts.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now