Which option is designed to pay until the first death among two or more annuitants and not continue to a survivor?

Which option is designed to pay until the first death among two or more annuitants and not continue to a survivor?

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

Answer: (A)

In contracts with more than one person, the key idea is how long the payments last relative to the lives insured. A joint life annuity is designed to make payments until the first death among two or more annuitants. After that first death, the payments stop, so there’s no continuation to a survivor. That matches the description of paying until the first death and not continuing to a survivor. By contrast, a joint and survivor arrangement is meant to keep paying to the surviving person after the first death, so it wouldn’t fit. A pure life annuity is tied to a single person and ends at that person’s death, not applicable to multiple annuitants. A multiple life annuity involves more than two lives and its payout pattern isn’t defined as ending at the first death in the same way, so it’s not the described option.

In contracts with more than one person, the key idea is how long the payments last relative to the lives insured. A joint life annuity is designed to make payments until the first death among two or more annuitants. After that first death, the payments stop, so there’s no continuation to a survivor. That matches the description of paying until the first death and not continuing to a survivor.

By contrast, a joint and survivor arrangement is meant to keep paying to the surviving person after the first death, so it wouldn’t fit. A pure life annuity is tied to a single person and ends at that person’s death, not applicable to multiple annuitants. A multiple life annuity involves more than two lives and its payout pattern isn’t defined as ending at the first death in the same way, so it’s not the described option.