Life Policy ProvisionsQuestion 161 of 315
Which life-income settlement option provides the largest periodic payment to a single beneficiary, but stops entirely at that beneficiary's death with no refund?
a.Life with period certain
b.Joint and survivor
c.Life with installment refund
d.Straight life (pure life) income
Explanation
Straight life (pure life) income produces the largest periodic payment because the insurer's obligation ends at the annuitant's death, with no guarantee to any survivor or estate. Options with refund or period certain reduce each payment in exchange for additional guarantees.
Law Reference: Cal. Ins. Code §10168Practice all 315 questions free — no signup required.
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