Variable Annuities
An annuitant elects a life with 20-year period certain annuity. If the annuitant dies after 8 years, what happens?
Period certain protects beneficiaries: remaining years paid if annuitant dies early.
Complete Analysis & Legal Rationale
With a life with 20-year period certain annuity, payments are guaranteed for at least 20 years. If the annuitant dies after 8 years, the designated beneficiary receives payments for the remaining 12 years of the guaranteed period.
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:
Payments cannot stop; the 20-year period is guaranteed.
Matches the verified teaching point in the explanation.
Payments continue as scheduled; no lump sum is typical unless converted.
The remaining guarantee is 12 years, not 20 additional years.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.