Variable Annuities
A life with period certain annuity guarantees payments for:
Life with period certain = pays for LONGER of lifetime OR guaranteed period.
Complete Analysis & Legal Rationale
A life with period certain annuity pays for the greater of the annuitant's lifetime or a specified minimum period (e.g., 10 or 20 years). If the annuitant dies before the period ends, a beneficiary receives payments for the remainder.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
This describes a straight life annuity, not life with period certain.
This describes a period certain annuity without the life component.
Matches the verified teaching point in the explanation.
This describes a joint and survivor annuity.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.