Arizona Life and Health Practice Exam

Which of these annuity types pays an income to multiple annuitants until the death of the last one?

1. Single Life Annuity

2. Joint Life Annuity

3. Joint Life With Last Survivor Annuity

4. Fixed Indexed Annuity

The correct answer is: Joint Life With Last Survivor Annuity

The choice of Joint Life With Last Survivor Annuity is correct because this type of annuity is specifically designed to provide income to multiple annuitants for as long as one of them is still alive. Unlike other types of annuities, which may terminate payments upon the death of the first annuitant, the Joint Life With Last Survivor Annuity continues to make payments until the last remaining annuitant passes away. This feature makes it particularly valuable for couples or partners who want to ensure that their income continues for the survivor. In contrast, a Single Life Annuity pays a fixed income only to one individual until that person dies, stopping payments entirely at that point. A Joint Life Annuity, while also paying to multiple annuitants, terminates payments upon the death of the first annuitant, which does not provide ongoing support for the survivor. A Fixed Indexed Annuity focuses more on providing growth linked to an index rather than structured income payments for multiple individuals, making it different in purpose and function.