Question

Which settlement option pays a stated amount to an annuitant but no residual value to a beneficiary?

a) Life Annuity
b) Fixed Period
c) Joint and Survivor
d) Lump Sum

Answer 1

The settlement option that pays a stated amount to an annuitant but no residual value to a beneficiary is the Life Annuity option.

Step-by-step explanation:

The settlement option that pays a stated amount to an annuitant but no residual value to a beneficiary is the Life Annuity option. In a life annuity, the annuitant receives regular payments for the rest of their life, but once they pass away, the payments cease and there is no residual value left for the beneficiary.