Massachusetts State Life Insurance Practice Exam

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Study for the Massachusetts State Life Insurance Exam. Use our flashcards and multiple choice questions, each with hints and explanations. Prepare confidently for your test!

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Which option allows payments to continue for a specific period regardless of the annuitant's death?

  1. Straight life income

  2. Life with period certain

  3. Cash refund

  4. Joint and survivor

The correct answer is: Life with period certain

The choice that allows payments to continue for a specific period regardless of the annuitant's death is life with period certain. This type of annuity ensures that the annuitant receives payments for their lifetime, but also guarantees that payments will be made for a minimum period – known as the "period certain," even if the annuitant passes away before that period ends. If the annuitant dies within the designated time frame, payments will continue to a designated beneficiary until the end of that period. This feature provides peace of mind to both the annuitant and their beneficiaries, ensuring that the investment is not lost upon the annuitant's death. In contrast, straight life income means payments will only continue as long as the annuitant is alive, without any guarantee for a specific time period. Cash refund options provide a return of the remaining cash value upon death, but do not guarantee payments for a certain period. Joint and survivor annuities provide benefits for two people, typically ensuring that payments continue as long as at least one of the individuals is alive, but do not guarantee a specific payment duration as is defined in a life with period certain structure.