Pennsylvania Life and Health Insurance Exam Practice Question
Which of the following annuities will pay benefits for the life of two individuals, continuing until both have died?
Correct Answer: A
Rationale: A joint and survivor annuity pays benefits for the lifetimes of two individuals, ensuring payments continue until both have passed away. This structure provides financial security for couples, as the surviving partner continues to receive payments.
In contrast, a fixed annuity guarantees a set payment amount over a specified period but does not extend benefits beyond the lives of the individuals involved. A refund annuity offers a return of the initial investment upon death, but it does not ensure ongoing payments for two lives. Lastly, a straight life annuity provides payments solely for one individual's life, ceasing upon their death, thus failing to cover both individuals.
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