Question

Under a pure life annuity, an income is payable by the company

A For a guaranteed period of time, whether or not the annuitant survives to the end of that period.
B For as long as either the annuitant or a named beneficiary is alive.
C Only for the life of the annuitant.
D Until the principal and interest are exhausted.

Answer 1

A pure life annuity is a type of financial product that provides a guaranteed income stream in retirement. The income is payable only for the life of the annuitant.

Step-by-step explanation:

A pure life annuity is a financial product offered by insurance companies as a way to provide a guaranteed income stream in retirement. Under a pure life annuity, the income is payable only for the life of the annuitant, option D. It does not continue for a guaranteed period of time, whether or not the annuitant survives to the end of that period (option A), nor does it continue for as long as either the annuitant or a named beneficiary is alive (option B).