Louisiana Series 101 – Life Insurance Practice Exam

With a Life Income Payment Option, the payments are designed to go only for the life of the annuitant. It guarantees income while living, but there is no provision for payments to continue after death. If the annuitant dies, the contract ends and no further payments are due to a surviving beneficiary under this option. Other arrangements like life with period certain or life with refund would continue payments to a beneficiary or for a guaranteed period, but those are different options. So the correct outcome is that all payments cease at the annuitant's death.