To supplement their income in their senior years, Harold purchased a fixed immediate annuity at age 65, naming his spouse, Lucy, as the joint annuitant under a joint and 50% survivor annuity payout option that pays the couple $1,000 per month. If Harold were to die today, which of the following statements would be CORRECT?
A) Lucy would continue receiving monthly benefits of $1,000, but only for her remaining life expectancy, at which time payments would cease if she were still alive.
B) Lucy would continue receiving monthly benefits of $500, but only for her remaining life expectancy, at which time payments would cease if she were still alive.
C) Lucy would continue receiving monthly benefits of $500 for the remainder of her life.
D) Lucy would continue receiving monthly benefits of $1,000 for the remainder of her life.
Ans: C) Lucy would continue receiving monthly benefits of $500 for the remainder of her life.
You might also like to view...
All corporations must have
A) preferred stock. B) capital stock. C) paid-in capital in excess of par. D) dividends payable.
"Follow higher principles and duties!" This statement is the central theme of which of the following theories of moral philosophy?
a. Virtue ethics. b. Consequentialism. c. Deontology. d. Descriptive ethics.