19. 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: B
A life annuity certain.
A life annuity certain guarantees a specified number of income payments regardless of whether the annuitant is alive to receive them. This type of annuity provides a level of financial security by ensuring that payments will be made for the predetermined period.
A) an irrevocable endowed annuity.
An irrevocable endowed annuity does not fit the description provided in the question, as it typically refers to an annuity that is funded by a permanent endowment. This option does not guarantee a specified number of payments independent of the annuitant's survival.
B) a life annuity certain.
This option is correct because a life annuity certain provides guaranteed payments for a specific number of years, regardless of the death of the annuitant. This directly aligns with the definition given in the question.
C) an assured life annuity.
An assured life annuity generally refers to an annuity that provides guaranteed payments for the lifetime of the annuitant but does not necessarily include a guarantee for a fixed number of payments regardless of survival. Thus, it does not meet the criteria specified in the question.
D) a guaranteed survivor annuity.
A guaranteed survivor annuity primarily focuses on providing benefits to a designated survivor after the annuitant's death, rather than guaranteeing a specified number of income payments during the annuitant’s lifetime. This makes it an incorrect choice based on the question context.
Conclusion
The life annuity certain is definitively the correct answer as it explicitly guarantees income payments for a specified number of periods regardless of the annuitant's mortality. The other options fail to meet this critical aspect, either focusing on different guarantees or conditions that do not align with the question's definition.