What is a pure life annuity?
Understand the Problem
The question is asking for a definition or explanation of a pure life annuity, which is a financial product that provides regular payments to an individual for the duration of their life.
Answer
An annuity providing payments until the annuitant's death, with no benefits after they die.
The final answer is a pure life annuity is an annuity that provides guaranteed periodic payments to the annuitant until their death, with no further benefits paid to anyone after the annuitant dies.
Answer for screen readers
The final answer is a pure life annuity is an annuity that provides guaranteed periodic payments to the annuitant until their death, with no further benefits paid to anyone after the annuitant dies.
More Information
A pure life annuity can offer higher periodic payments compared to other types of annuities because it does not provide for beneficiaries after the annuitant's death.
Tips
A common mistake is confusing a pure life annuity with an annuity that includes beneficiary benefits. Ensure you know that pure life annuities stop payments upon the annuitant's death.
Sources
- What Is a Pure Life Annuity? - HelpAdvisor.com - helpadvisor.com
- Learn the Basics of Pure Life Annuities | Trusted Choice - trustedchoice.com
- Straight Life Or “Pure Annuity” - ncdoi.gov
