31. Which of the following guarantees the annuitant CANNOT outlive their benefits?
Answer: D
Guaranteed lifetime withdrawal benefits ensure the annuitant CANNOT outlive their benefits.
Guaranteed lifetime withdrawal benefits provide a safety net for annuitants, ensuring that they receive regular income for as long as they live, regardless of the account balance.
A) Guaranteed minimum accumulation benefit.
This option refers to a guarantee that the account value will not fall below a certain level, but it does not ensure that the annuitant will receive income for life. Therefore, this option does not satisfy the condition of guaranteeing that the annuitant cannot outlive their benefits.
B) Right of survivorship.
The right of survivorship pertains to ownership rights in the context of joint accounts or property and does not relate to income guarantees for annuitants. Thus, it does not guarantee that the annuitant cannot outlive their benefits.
C) Simple income rider.
A simple income rider may provide additional income but does not guarantee that the payments will continue for the lifetime of the annuitant. This means it does not fulfill the requirement of ensuring that the annuitant cannot outlive their benefits.
D) Guaranteed lifetime withdrawal benefits.
This option ensures that the annuitant will receive a specified income for life, even if the account balance is depleted. This guarantee directly addresses the concern of outliving benefits, making it the correct choice.
Conclusion
Guaranteed lifetime withdrawal benefits stand out as the only option that ensures an annuitant cannot outlive their benefits by providing a consistent income for life. The other options fail to meet this critical requirement, either focusing on account value or providing conditional income that does not last for the lifetime of the annuitant.