Question

Daniel and Karen are the annuitants of a joint-and-survivor annuity. When either Daniel or Karen dies:

a. the balance of the annuity will be paid to the survivor in a lump sum.
b. installment payments continue for as long as a designated amount is available in the annuity.
c. a guaranteed number of annuity units will be paid to the survivor.
d. the surviving annuitant will continue to receive payments for life.

Answer 1

In a joint-and-survivor annuity, when one of the annuitants passes away, the survivor will continue to receive annuity payments for the rest of their life.

Step-by-step explanation:

When either Daniel or Karen dies, the surviving annuitant will continue to receive payments for life. A joint-and-survivor annuity is designed to provide income for two people's lives, usually that of spouses. Upon the death of one annuitant, the annuity does not pay out a lump sum or limit the payments to a specified number of units or to available funds. Instead, the payments continue for the life of the surviving annuitant, ensuring ongoing financial support.

When either Daniel or Karen dies, the surviving annuitant will continue to receive payments for life. This is because they are the annuitants of a joint-and-survivor annuity, which means that the annuity payments continue to the surviving annuitant after the death of the other annuitant. The payments will continue until the death of the surviving annuitant.