33. An annuity that guarantees a given number of income payments, whether or not the annuitant is alive to receive them, is referred to as
Answer: A
An annuity that guarantees a given number of income payments, whether or not the annuitant is alive to receive them, is referred to as a life annuity certain.
A life annuity certain provides guaranteed payments for a specified period regardless of the annuitant's lifespan, ensuring that beneficiaries receive the payments even if the annuitant passes away before the term ends.
A) a life annuity certain.
This option is correct as it accurately describes an annuity that guarantees a series of payments for a predetermined duration, irrespective of the annuitant's survival during that period. It ensures the financial security of the annuitant's beneficiaries by committing to pay out the total number of scheduled payments.
B) an assured life annuity.
This option is incorrect because an assured life annuity typically guarantees payments for the lifetime of the annuitant, but does not ensure payments for a set number of years if the annuitant dies early. It focuses on the lifetime aspect rather than a fixed term of payments.
C) a guaranteed survivor annuity.
This option is also incorrect as a guaranteed survivor annuity usually provides income to a designated beneficiary after the original annuitant has passed away. It does not guarantee payments for a specific number of income payments if the annuitant dies during the payment period.
D) an irrevocable endowed annuity.
This option is incorrect as it refers to a type of annuity that has specific features related to endowment and irrevocability, rather than guaranteeing a specified number of payments regardless of the annuitant's lifespan. It does not align with the definition of the annuity in question.
Conclusion
The life annuity certain is definitively the correct answer because it guarantees a set number of payments to be made, ensuring financial security for beneficiaries regardless of whether the annuitant is alive. Other options either focus on lifetime payments, or do not address the guaranteed payment term, making them unsuitable in this context.