Which of the Following Statements About Life Income Settlement Options

question 55

Multiple Choice

Which of the following statements about life income settlement options is (are) true?
I.Under a joint-and-survivor income option,payments cease at the death of the first annuitant.
II.Under a life income with guaranteed period,a contingent beneficiary is guaranteed a minimum number of payments regardless of when the primary beneficiary dies.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Recyclables

Materials or products that can be converted into reusable material through the recycling process.

Policy Weakness

A flaw or deficiency in a policy that prevents it from achieving its intended outcomes or makes it inefficient.

Bargaining Costs

The expenses in time, resources, or money that are incurred during the process of negotiating agreements between parties.

Coase Theorem

A principle stating that, in the presence of clear property rights and negligible transaction costs, parties can negotiate to correct externalities and allocate resources efficiently.