Question

In a cash refund option, if the annuitant dies before the annuity fund is depleted, where does the balance go?

A) Taxes.
B) Estate.
C) Insurer.
D) Beneficiary.

Answer 1

In a cash refund option, if the annuitant dies before the annuity fund is depleted, the balance goes to the beneficiary.

Step-by-step explanation:

In a cash refund option, if the annuitant dies before the annuity fund is depleted, the balance goes to the beneficiary.

When an annuity is purchased, the annuitant selects a payout option. In the cash refund option, if the annuitant dies before the annuity fund is depleted, the remaining balance is paid out to the designated beneficiary. This ensures that the annuitant's money is not lost and can be passed on to their chosen beneficiary.

For example, let's say an individual purchases an annuity and selects the cash refund option. They start receiving regular payments from the annuity. If the annuitant were to pass away before all the payments have been made, the remaining balance would go to the beneficiary.