Question

Lucas purchased an annuity for himself. He begins to receive annuity payments. If the amount of premium in the annuity has not been paid out upon his death, then his grandson will receive the balance. What type of annuity does Lucas have?

Answer 1

Answer: The cash refund option.

Step-by-step explanation:

The cash refund annuity also known as the life with cash annuity is a form of annuity payment made to an individual (annuitant) uptill the annuitant's death and if the amount to be paid has not been completely paid to the annuitant in his/her lifetime a beneficiary chosen by the annuitant would receive the remaining annuities.