Group Life & AnnuitiesQuestion 114 of 716
A married couple wants lifetime income that continues to whichever spouse lives longer. Which annuity settlement option is the most common fit?
a.Straight life on the husband only
b.Single life with cash refund on the wife
c.Fixed period for 10 years
d.Joint and survivor
Explanation
Joint and survivor pays as long as either annuitant is alive, with the survivor commonly receiving 100%, 75%, or 50% of the original payment. It is the most common payout choice for married couples seeking lifetime income for both.
Law Reference: Cal. Ins. Code §10168.2This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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Related questions on this topic
- Which statement best describes a single premium annuity?
- By definition, a single premium immediate annuity (SPIA) must begin making payouts to the annuitant no later than:
- Which annuity settlement option produces the largest periodic payment for a given premium, all else equal?
- What is the additional IRS penalty (on top of ordinary income tax) for taking a taxable withdrawal from a non-qualified annuity before age 59½?
- Which of the following exchanges is NOT permitted on a tax-free basis under Internal Revenue Code Section 1035?
- Which statement about a typical annuity surrender charge schedule is correct?
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)