Life Income with Refund provides distributions for the lifetime; if death occurs before total paid-in is refunded, the balance is refunded to the beneficiary as either a fixed amount or cash.

Life Income with Refund provides distributions for the lifetime; if death occurs before total paid-in is refunded, the balance is refunded to the beneficiary as either a fixed amount or cash.

• A. True
• B. False
• C. Only cash is refunded
• D. Refund occurs only after 10 years

Answer: (A)

Life Income with Refund guarantees lifetime payments to the insured, with a safeguard for any unrecouped premium. If the annuitant dies before the total amount paid into the contract is returned, the remaining balance is refunded to the beneficiary. This refund can be provided as a lump-sum cash amount or as continued payments to the beneficiary until the original amount paid in is fully recovered. Therefore, the statement describing the refund of the remaining balance to the beneficiary is true.

Life Income with Refund guarantees lifetime payments to the insured, with a safeguard for any unrecouped premium. If the annuitant dies before the total amount paid into the contract is returned, the remaining balance is refunded to the beneficiary. This refund can be provided as a lump-sum cash amount or as continued payments to the beneficiary until the original amount paid in is fully recovered. Therefore, the statement describing the refund of the remaining balance to the beneficiary is true.