9.8k views
1 vote
If the annuitant dies before the principal sum is depleted, the Refund Life Annuity Option will pay the entire annuity amount to the beneficiary in a lump sum payment or over scheduled installments.

User Fisch
by
8.5k points

1 Answer

3 votes

Final answer:

The Refund Life Annuity Option pays the entire annuity amount to the beneficiary if the annuitant dies before the principal sum is depleted, and it can be received as either a lump sum or scheduled installments.

Step-by-step explanation:

Refund Life Annuity Option

The Refund Life Annuity Option is a feature of an annuity contract that provides a payout to the beneficiary if the annuitant dies before the principal sum is depleted. Under this option, the entire annuity amount is paid out either in a lump sum or over scheduled installments to the beneficiary.

For example, let's say John has a refund life annuity with a principal sum of $100,000. If John passes away and there is still $50,000 left in the annuity account, the beneficiary would receive this remaining amount either in one lump sum or through scheduled installments.

User Bubbles
by
8.0k points

No related questions found