Exam DISC-IA Practice Question 206
Study guide: Exam DISC-IA
At age 66 a retiree annuitizes under the life with 20-year period certain option, at $1,200 a month. He dies 12 years after payments begin. Which statement is correct?
- A) Payments stop at his death, because a life annuity pays only while the annuitant is alive
- B) His beneficiary receives a lump sum equal to the premium paid less the payments made
- C) His beneficiary receives $1,200 a month for the rest of the beneficiary's life
- D) His beneficiary receives $1,200 a month for the remaining 8 years of the period certain
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