Question:- Which settlement option pays a stated amount to an annuitant but no residual value to a beneficiary?
Answer:
The settlement choice meaning payment of a stated amount to the annuitant but to the beneficiary without residual value is called the traditional life annuity. If collecting a life annuity, the annuitant can expect consistent and recurring payments disbursed during a lifetime. However, in the event of demise, such beneficiaries do not stand to inherit any remaining annuity benefits