Question 70

Life only is the annuity payout option that has no additional payouts regardless of when the annuitant dies.

The life only annuity option provides periodic payments to the annuitant for their lifetime but ceases upon their death, leaving no residual value or additional payouts to beneficiaries.

A) Life only.

This option is correct because it guarantees payments only during the lifetime of the annuitant. Once the annuitant dies, the payments stop, and there are no further disbursements, which aligns with the question's requirement for an annuity option without additional payouts.

B) Cash refund.

The cash refund option is incorrect as it allows for a refund of the remaining value of the annuity if the annuitant dies before receiving payments equivalent to their initial investment. This means there are additional payouts available to beneficiaries.

C) Life certain.

This option is incorrect because a life certain annuity guarantees payments for a minimum period, even if the annuitant dies. If the annuitant passes away before the end of the guarantee period, payments continue to a beneficiary, contradicting the question's stipulation for no additional payouts.

D) Installment refund.

The installment refund option is also incorrect because it ensures that if the annuitant dies before receiving a total amount equivalent to the purchase price, the remaining balance will be paid out in installments to a beneficiary. This provides additional payouts, which does not meet the criteria of the question.

Conclusion

The life only option is definitively the correct answer as it aligns with the requirement of having no further payouts after the annuitant's death. All other options either provide some form of payout to beneficiaries or guarantee payments for a set period, which fails to meet the criteria specified in the question.