Which annuity covers two or more lives?

Which annuity covers two or more lives?

• A. Joint life annuity
• B. Multiple life annuity
• C. Pure life annuity
• D. Single life annuity

Answer: (B)

In annuities, the number of lives covered is the defining feature that differentiates types. A multiple life annuity is designed to provide payments based on the lifetimes of two or more people, which exactly matches the idea of covering two or more lives. The label explicitly signals that the contract can involve more than one person, making it the best answer for “two or more lives.” The other options focus on either a single life—covering only one person—or a two-life arrangement with a more specific structure. A single life or pure life annuity covers just one person, so they don’t fit the “two or more lives” criterion. A joint life annuity involves two lives, but the terminology in this context points to the broader multiple life category as the correct general description.

In annuities, the number of lives covered is the defining feature that differentiates types. A multiple life annuity is designed to provide payments based on the lifetimes of two or more people, which exactly matches the idea of covering two or more lives. The label explicitly signals that the contract can involve more than one person, making it the best answer for “two or more lives.”

The other options focus on either a single life—covering only one person—or a two-life arrangement with a more specific structure. A single life or pure life annuity covers just one person, so they don’t fit the “two or more lives” criterion. A joint life annuity involves two lives, but the terminology in this context points to the broader multiple life category as the correct general description.