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.Joint and survivor
b.Life with period certain
c.Straight life (pure life) income
d.Life with installment refund
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.
Related questions on this topic
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- 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?
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Sen Lin, PrepPass Founder · 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)