Question

What happens when a variable annuity contract holder dies during the accumulation period?

1) The contract is terminated and the accumulated value is paid to the beneficiary
2) The contract is transferred to a new holder
3) The accumulated value is forfeited by the insurance company
4) The contract is converted into a fixed annuity

Answer 1

When a variable annuity contract holder dies during the accumulation period, the contract is terminated and the accumulated value is paid to the beneficiary.

Step-by-step explanation:

When a variable annuity contract holder dies during the accumulation period, the contract is terminated and the accumulated value is paid to the beneficiary.