Which settlement option provides payments as long as both annuitants are living?

Which settlement option provides payments as long as both annuitants are living?

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

Answer: (A)

The key idea is how settlement options determine how long payments last based on the lives of the annuitants. This option is defined by needing both named annuitants to be alive for payments to continue. If either one dies, the condition “both alive” is no longer met, so payments stop. In other words, it’s a two-life option that ends at the first death. This differs from options that keep paying while at least one annuitant remains alive (which would continue through the survivor’s life), and from a fixed-term payout (which ends after a set period regardless of who’s alive) or a lump-sum payout (which pays once, at death). So, the described setup pays only while both annuitants are living.

The key idea is how settlement options determine how long payments last based on the lives of the annuitants. This option is defined by needing both named annuitants to be alive for payments to continue. If either one dies, the condition “both alive” is no longer met, so payments stop. In other words, it’s a two-life option that ends at the first death.

This differs from options that keep paying while at least one annuitant remains alive (which would continue through the survivor’s life), and from a fixed-term payout (which ends after a set period regardless of who’s alive) or a lump-sum payout (which pays once, at death). So, the described setup pays only while both annuitants are living.