53. Which of the following guarantees the annuitant CANNOT outlive their benefits?
Answer: B
Guaranteed lifetime withdrawal benefits ensure the annuitant cannot outlive their benefits.
Guaranteed lifetime withdrawal benefits provide a safety net for annuitants, allowing them to withdraw a set amount for life regardless of the account balance, thus ensuring they cannot outlive their benefits.
A) Right of survivorship.
The right of survivorship pertains to property ownership and does not relate to annuities or the guarantees of benefit payments to an annuitant. Therefore, it does not ensure that an annuitant cannot outlive their benefits.
B) Guaranteed lifetime withdrawal benefits.
This option guarantees that the annuitant can withdraw a specified amount for their lifetime, offering financial security by ensuring they continue to receive income even if the underlying investment is depleted. This is the correct option as it directly addresses the concern of outliving benefits.
C) Guaranteed minimum accumulation benefit.
While guaranteed minimum accumulation benefits provide a minimum value that an annuitant can receive, they do not ensure ongoing withdrawals for life. This means an annuitant could potentially outlive their withdrawals if they exceed the accumulated amount.
D) Simple income rider.
A simple income rider typically offers a fixed income for a specific duration but does not guarantee lifetime income. Therefore, it does not prevent the possibility of an annuitant outliving their benefits.
Conclusion
Guaranteed lifetime withdrawal benefits are specifically designed to secure an income stream for the annuitant for as long as they live, effectively eliminating the risk of outliving their benefits. Other options, while they may offer various financial features, do not provide the same level of assurance regarding lifetime income.