Annuities

Question 1

is not really a life insurance policy; it is a purchase of income.

Answer 1

annuity

Question 2

If the annuitant dies after his or her annuity income begins, no payment will be made to a beneficiary or to anyone else. Death ends the contract.

Answer 2

life annuity

Question 3

If the annuitant dies after his or her annuity income begins, his or her beneficiary will receive a cash payment equal to the annuity fund less the amount of income already paid out to the annuitant.

Answer 3

cash refund annuity

Question 4

If the annuitant dies after his or her annuity income begins, the beneficiary will receive the same monthly income until all installments are paid—including those paid to his or her relative.

Answer 4

installment refund annuity

Question 5

If the annuitant dies within a specified period (such as ten or twenty years), the same annuity payments will continue to his or her beneficiary until end of the stated period.

Answer 5

period certain annuity

Question 6

An annuity income is paid to an annuitant and his or her beneficiary. If either dies, the same income continues to the survivor for life. When the survivor dies, no further payments are made to anyone.

Answer 6

joint and full survivor annuity