For Life Income (Pure or Straight) payments, the dollar amount of each payment depends on which factors?

For Life Income (Pure or Straight) payments, the dollar amount of each payment depends on which factors?

• A. Beneficiary's Choice
• B. Age and Gender of the Recipient
• C. Stock Market Index
• D. Premium Paid

Answer: (B)

Life Income payments are set using actuarial calculations that project how long the recipient is expected to live. Those calculations rely on mortality tables that vary by age and gender because longevity differs between younger vs. older individuals and between men and women. As a result, the amount paid each period is determined by the recipient’s age and gender at the start of the annuity. The other factors don’t drive the payout level: the beneficiary’s choice doesn’t change the fixed rate, stock market indices apply to indexed or variable products rather than a pure life annuity, and the premium paid influences the purchase price, not the per-payment amount set by mortality-based rates.

Life Income payments are set using actuarial calculations that project how long the recipient is expected to live. Those calculations rely on mortality tables that vary by age and gender because longevity differs between younger vs. older individuals and between men and women. As a result, the amount paid each period is determined by the recipient’s age and gender at the start of the annuity. The other factors don’t drive the payout level: the beneficiary’s choice doesn’t change the fixed rate, stock market indices apply to indexed or variable products rather than a pure life annuity, and the premium paid influences the purchase price, not the per-payment amount set by mortality-based rates.