What is a pure life annuity?
Understand the Problem
The question is asking for a definition and explanation of what a pure life annuity is, including its features and how it functions.
Answer
A pure life annuity provides guaranteed income until the annuitant's death, with no further benefits after death.
The final answer is a pure life annuity is a type of investment that provides guaranteed periodic payments until the annuitant's 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 a type of investment that provides guaranteed periodic payments until the annuitant's death, with no further benefits paid to anyone after the annuitant dies.
More Information
Pure life annuities are often chosen for their higher payout rates compared to other annuity types, as they don't have death benefits.
Tips
Confusing a pure life annuity with other types of annuities that include death benefits is a common mistake.
Sources
- What Is a Pure Life Annuity? - HelpAdvisor.com - helpadvisor.com
- Life Annuities Information: Pure Annuity — ImmediateAnnuities.com - immediateannuities.com
- What are the different types of annuities? | III - iii.org
