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LLQP (Life Licence Qualification Program) Practice Exam · Question

A client purchases a Life Annuity with a 10-year Guarantee Period. Which statement is correct?

A single-life annuity with a 10-year guarantee will pay the annuitant for as long as they live. If they die within the first 10 years, the remaining payments fo

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Question: A client purchases a Life Annuity with a 10-year Guarantee Period. Which statement is correct?

Answer options:

  • The payments stop exactly after 10 years. ✅ Payments continue for the life of the annuitant, but for at least 10 years.
  • Payments are only made if the annuitant dies within 10 years.
  • The annuitant receives a lump sum after 10 years.

Correct answer: Payments continue for the life of the annuitant, but for at least 10 years.

Explanation: A single-life annuity with a 10-year guarantee will pay the annuitant for as long as they live. If they die within the first 10 years, the remaining payments for that 10-year period are paid to the beneficiary. If they live for 20 years, they get 20 years of payments.

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