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    Question

    A life annuity in which there is no refund to any

    beneficiary at the death of the annuitant is termed as?
    A Straight Life Annuity Correct Answer Incorrect Answer
    B Subrogation Correct Answer Incorrect Answer
    C Straight Life Correct Answer Incorrect Answer
    D Subjective Risk Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A straight life annuity is a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit. Like all annuities, a straight life annuity provides a guaranteed income stream until the death of the annuity owner. What makes a straight life unique is that, once the annuitant dies, all payments stop and no more money or death benefits are due to the annuitant, their spouse or heirs. This has the effect of making the straight life annuity less expensive than many other types of annuities and retirement income products.

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