Question

The "death benefit" associated with a variable annuity contract means that if the contract holder dies:__________.

A. prior to annuitization, the amount invested in the contract is returned to a beneficiary
B. after annuitization, the amount invested in the contract is returned to a beneficiary
C. prior to annuitization, the insurance company will make a lump sum payment to complete the terms of the contract
D. after annuitization, the insurance company will pay for the insured's burial expenses

Answer 1

B. after annuitization, the amount invested in the contract is returned to a beneficiary

Step-by-step explanation:

Annuitization: In business, the term "annuitization" is described as a phenomenon which is responsible for converting an "annuity investment" into a stream or flow of regular payments. However, with an "annuity" any financial product that is responsible for making out regular payouts after a given time of an individual, his or her investment can pay off quickly.