122k views
0 votes
A customer buys a variable annuity and elects a payout option of Life Income with a 20 year period certain. This means that payments will continue for:

1 Answer

5 votes

Answer:

the annuitant's life, but if he dies before 20 years elapse, payments continue to his heir(s)

Step-by-step explanation:

An annuity life payment is a financial option that continues until the annuitant dies. a lump sum payment is made by this annuitant which he uses in securing a payout option of Life Income with a 20 year period certain . This annuity would continues for as long as the customer or annuitant is alive, but if he dies before that certain period, Someone else, that is a beneficiary or heir would be entitled to the payment until that period of 20 years elapses.

User Shtolik
by
4.5k points