Group Life & AnnuitiesQuestion 113 of 315
Which annuity settlement option produces the largest periodic payment for a given premium, all else equal?
a.Joint and 100% survivor
b.Life with 20-year period certain
c.Life with installment refund
d.Straight life
Explanation
Straight life produces the highest periodic payment because payments end at the annuitant's death, with nothing payable to a survivor or beneficiary. Joint and survivor and any form with a guarantee or refund must cost something, so they lower the per-payment amount.
Law Reference: Cal. Ins. Code §10168.2Practice all 315 questions free — no signup required.
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