A life annuity ceases payments to the annuitant at

Rationale

A life annuity ceases payments to the annuitant at death.

A life annuity is designed to provide income for the lifetime of the annuitant, thus payments will terminate upon the death of the annuitant, as the contract is specific to their life.

A (death.) CORRECT

The life annuity contract stipulates that payments will be made for the duration of the annuitant's life. Once the annuitant passes away, the payments stop, as the contract is contingent on their continued existence.

B (maturity.) YOUR ANSWER

Maturity typically refers to the point at which an investment or insurance product reaches its end date, often associated with term products rather than life annuities. Life annuities do not have a maturity date in the traditional sense; instead, they are designed to last until the death of the annuitant.

C (policy termination.) YOUR ANSWER

Policy termination can occur for various reasons, such as non-payment of premiums or the completion of a contractual term in other types of insurance. However, for a life annuity, termination does not apply in the same way since the annuity is specifically tied to the annuitant's lifespan.

D (age 100.) YOUR ANSWER

The age of 100 is not a standard cutoff for life annuities. While some contracts may specify that payments continue until a certain age, most life annuities will cease at the death of the annuitant, regardless of whether they reach age 100.

Conclusion

In summary, a life annuity is designed to provide payments for the lifetime of the annuitant, which ceases upon their death. Other options presented, such as maturity, policy termination, or age 100, do not accurately describe the conditions under which a life annuity ends. Thus, the defining characteristic of a life annuity is its dependence on the annuitant's life, making death the correct answer.

A life annuity ceases payments to the annuitant at

A life annuity ceases payments to the annuitant at death.

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