Which settlement option provides payments as long as either annuitant is living?

Which settlement option provides payments as long as either annuitant is living?

• A. an insurance or annuity settlement option in which payments continue for as long as both annuitants are living
• B. an insurance or annuity settlement option in which payments continue for as long as either of two annuitants are living
• C. a fixed-term payout
• D. a lump-sum payout on death

Answer: (B)

The concept is how two-life (joint) settlement options work in an annuity. When there are two annuitants, you can choose an arrangement that keeps paying even after one dies. The option that provides payments as long as either annuitant is living is the joint and survivor setup. Here, as long as at least one of them remains alive, payments continue; they only stop when both have died. This protects the survivor by ensuring ongoing income. The other options don’t fit this idea: a fixed-term payout ends after a set number of years, not tied to life status; a lump-sum payout is a single payment at death, with no ongoing payments tied to living beneficiaries.

The concept is how two-life (joint) settlement options work in an annuity. When there are two annuitants, you can choose an arrangement that keeps paying even after one dies. The option that provides payments as long as either annuitant is living is the joint and survivor setup. Here, as long as at least one of them remains alive, payments continue; they only stop when both have died. This protects the survivor by ensuring ongoing income.

The other options don’t fit this idea: a fixed-term payout ends after a set number of years, not tied to life status; a lump-sum payout is a single payment at death, with no ongoing payments tied to living beneficiaries.