Which option covers two or more lives with payments conditioned on both lives?

Study for the Series 65 Exam. Enhance your knowledge with flashcards and multiple choice questions, each supplemented with hints and explanations. Prepare effectively and get confident about your upcoming exam!

Multiple Choice

Which option covers two or more lives with payments conditioned on both lives?

Explanation:
Focus on multi-life annuities. A joint life with last survivor annuity is designed for two lives and provides payments that continue until the second person dies—the last survivor. This means the income is tied to both lives, offering lasting payments to a couple even after one person passes away, until the final death occurs. The other options are not two-life arrangements: a life annuity with period certain pays for one person’s lifetime plus a guaranteed period, a straight life annuity covers only one life, and a refund annuity is about refunding the premium rather than providing continuing payments across two lives.

Focus on multi-life annuities. A joint life with last survivor annuity is designed for two lives and provides payments that continue until the second person dies—the last survivor. This means the income is tied to both lives, offering lasting payments to a couple even after one person passes away, until the final death occurs. The other options are not two-life arrangements: a life annuity with period certain pays for one person’s lifetime plus a guaranteed period, a straight life annuity covers only one life, and a refund annuity is about refunding the premium rather than providing continuing payments across two lives.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy