Question 37

Life annuity certain provides payments to a survivor for the remainder of a guaranteed period.

This option ensures that payments are made for a specified period, regardless of whether the annuitant survives the entire term. If the annuitant passes away before the period ends, the remaining payments are made to the designated survivor.

A) life annuity certain

This option is correct because a life annuity certain guarantees payments for a specific duration. If the annuitant dies before the end of this duration, the survivor continues to receive payments until the end of that guaranteed period, thus providing financial support.

B) temporary annuity certain

This option is incorrect as a temporary annuity certain provides payments for a fixed period, but does not guarantee payments to a survivor. Once the term ends, no further payments are made, regardless of the annuitant's status.

C) refund life annuity

This option is also incorrect because a refund life annuity provides a return of the remaining value of the annuity upon the annuitant's death. While it may benefit a survivor, it does not offer ongoing payments for a guaranteed period.

D) pure life

This option is incorrect since a pure life annuity provides payments only for the lifetime of the annuitant, with no guaranteed payments to a survivor. Once the annuitant passes away, payments cease entirely.

Conclusion

The life annuity certain is definitively the right choice as it fulfills the requirement of providing payments to a survivor for the remainder of a guaranteed period. All other options either fail to provide ongoing payments after the annuitant's death or do not guarantee a specific payment duration, thus lacking the essential feature of the correct answer.