Life Policy ProvisionsQuestion 161 of 716
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.Joint and survivor annuity income
b.Life income with a period certain
c.Straight life (pure life) income
d.Installment refund 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 §10168This 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
- If an applicant misstates their age on a life insurance application and the error is discovered after death, what action does the misstatement-of-age provision require?
- Under which settlement option does the insurer retain the death benefit and pay only the earnings on it to the beneficiary at regular intervals?
- A beneficiary wants guaranteed equal payments for the next 20 years, even if she dies before that period ends, with any remaining payments going to her estate. Which settlement option meets this need?
- Which nonforfeiture option uses the cash value of a lapsed permanent policy to keep the same face amount in force as term insurance for as long as the cash value will last?
- An owner of a lapsed whole life policy elects the reduced paid-up nonforfeiture option. What is the result?
- Policy dividends paid on participating life insurance policies are generally treated for federal income-tax purposes as which of the following?
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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)