Which of the following is true regarding the pure life annuity settlement option?

A. It guarantees that all the proceeds will be paid out.
B. It provides the highest monthly benefit.
C. The beneficiary will receive a refund of the principal.
D. It guarantees income for a specified period of time.



Answer :

Final answer:

A pure life annuity settlement guarantees all proceeds and provides income for the annuitant's lifetime.


Explanation:

Pure Life Annuity Settlement Option:

A. It guarantees that all the proceeds will be paid out.

B. It provides the highest monthly benefit.

C. The beneficiary will receive a refund of the principal.

D. It guarantees income for a specified period of time.

In a pure life annuity settlement option, option A is true as it ensures all proceeds are paid out, while option C is false since it does not provide a refund of the principal. Option B may not always provide the highest monthly benefit, and option D is not fully accurate as it typically guarantees income for the annuitant's lifetime.


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