Types of Policies
How is the payout phase (annuitization) structured under a straight life income annuity settlement option?
Answer and explanation
Answer: A. Straight life annuitization provides maximum monthly payout for life, but payments cease immediately upon the annuitant's death.Source: NAIC Annuity Buyer's Guide — PDF page 5, Straight Life Payout
More types of policies questions
- How do premiums behave over time in a typical decreasing term life policy?
- How does a life annuity with 10-year period certain settlement option protect beneficiaries?
- How does the death benefit of an increasing term rider or policy change over time?
- How does the premium for a joint life (first-to-die) policy compare to buying two separate individual policies of the same face amount?
- How is interest credited to cash values in an interest-sensitive whole life policy?
- How is single-premium whole life ordinarily funded?
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