Which statement accurately describes the beneficiary provision in a Life Annuity with Period Certain?

• A. The beneficiary receives payments for the remainder of the period if the annuitant dies early
• B. There is no beneficiary; payments stop at death
• C. The beneficiary receives a single lump-sum payment upon death
• D. The payments extend for life to the beneficiary after the annuitant dies

Answer: (A)

In a Life Annuity with Period Certain, there is a fixed guaranteed period for which payments are made. If the annuitant dies before that period ends, the payments continue to a named beneficiary for the remaining portion of the period. This protects the beneficiary for the length of the guaranteed timeframe without requiring a lump-sum payment, and the guarantee does not extend indefinitely for the beneficiary beyond that period.

So the correct statement reflects that the beneficiary gets the remaining payments for the rest of the guaranteed period if death occurs early. It isn’t about no beneficiary, a lump-sum payment, or payments extending for life to the beneficiary after death.