Question 71

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

The life only annuity payout option provides payments solely during the lifetime of the annuitant. Once the annuitant passes away, no further payments are made, making it distinct in that it offers no additional benefits to beneficiaries.

A) Installment refund.

The installment refund option guarantees that if the annuitant dies before receiving payments equivalent to the initial investment, the remaining balance is paid out to beneficiaries. This means that it does provide additional payouts, contrary to what the question specifies.

B) Life certain.

The life certain option guarantees payments for a minimum period, regardless of whether the annuitant is alive or not. If the annuitant dies before the end of this period, payments continue to be made to beneficiaries, thereby ensuring additional payouts.

C) Cash refund.

The cash refund option returns the remaining principal to the beneficiaries if the annuitant dies before receiving the equivalent value of the annuity. This also means that it includes additional payouts to beneficiaries, which does not align with the question's criteria.

D) Life only.

Life only is the correct choice as it strictly provides payments only during the annuitant's lifetime, with no further payments made after their death. This option does not include any additional payouts to beneficiaries, fulfilling the condition outlined in the question.

Conclusion

Life only is definitively the correct answer as it offers no additional payouts upon the death of the annuitant, making it unique among the options provided. In contrast, the other options all include provisions for beneficiaries or additional payouts, which directly contradicts the question's requirement.