Multiple choice general knowledge

__________provides the highest payout because the monthly payment is calculated only on the life of the annuitant.

  1. Joint Life option

  2. Life option

  3. Period certain

  4. Life with Guaranteed term
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Life option provides the highest payout because monthly payments are calculated based only on the annuitant's single life, without any guarantee period or survivor benefits. Joint Life options pay over two lives (lower payments), Period Certain guarantees payments for a set time (lower payments), and Life with Guaranteed Term combines features (lower payments than pure Life). The pure Life option stops completely at the annuitant's death, allowing higher payments while alive.

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