A modification that guarantees an income for two recipients that neither can outlive.

A modification that guarantees an income for two recipients that neither can outlive.

• A. Refund life
• B. Joint and survivor arrangement
• C. Joint life annuity
• D. Multiple life annuity

Answer: (B)

This is about survivorship in annuities—the joint and survivor arrangement. It’s designed to provide an income to two people and to continue paying after the first person dies, down to the death of the second person. That means neither recipient will outlive the income: the stream lasts for both lifetimes. The payments may be reduced after the first death to reflect the changed financial risk, but the payments continue until the last survivor dies. Other options don’t guarantee income for two lives in the same way: a joint life annuity ends at the first death, and a refund-life or multiple-life setup serves different purposes and isn’t tailored to ensure continuity for two specific recipients until both are gone.

This is about survivorship in annuities—the joint and survivor arrangement. It’s designed to provide an income to two people and to continue paying after the first person dies, down to the death of the second person. That means neither recipient will outlive the income: the stream lasts for both lifetimes. The payments may be reduced after the first death to reflect the changed financial risk, but the payments continue until the last survivor dies. Other options don’t guarantee income for two lives in the same way: a joint life annuity ends at the first death, and a refund-life or multiple-life setup serves different purposes and isn’t tailored to ensure continuity for two specific recipients until both are gone.