Cassie, age 62, paid a life insurer 100,000 in exchange for a life annuity. If Cassie dies before receiving 120 monthly payments from the insurer, the remaining payments will be made to a beneficiary.
If Cassie dies after receiving 120 payments, no additional payments are made by the insurer. The annuity option Cassie selected it
A) life annuity, no refund.
B) life annuity with period certain.
C) installment refund annuity.
D) cash refund annuity.
Question 2
Brad funded a life annuity through installment payments. At age 60, he decided to elect an annuity settlement option and to begin to receive payments.
Which of the following annuity payout options will provide Brad with the highest monthly income?
A) life annuity (no refund)
B) life income with payments guaranteed for 5 years
C) life income with payments guaranteed for 10 years
D) installment refund annuity
