| LIFE ANNUITIES (STRAIGHT LIFE ANNUITIES) | | | | states that in event of the annuitant’s death, |
| This is the most common type of annuity. The | | | | the company will pay an amount at least equal to |
| simple "Straight Life Annuity" provides for | | | | the total dollars paid in as premiums. The |
| guaranteed periodic payments that terminate | | | | company will continue to pay the guaranteed |
| upon the death of the annuitant. Once the | | | | amount of monthly income for as long as the |
| annuitant dies, the contract is fulfilled and no | | | | annuitant lives. |
| payments are made. This type of annuity does | | | | There are two types of this annuity: |
| not guarantee that the annuitant will receive | | | | Cash Refund: The Company agrees that if the |
| payments equal to the amount paid as premiums | | | | annuitant dies, it will refund in cash the difference |
| on the contract. If the annuitant lives a long time, | | | | between the income that annuitant received and |
| they will recover more than all of the premiums | | | | the amount that was paid in premiums plus |
| they have paid; if they die soon after | | | | interest earned. |
| annuitization, the insurance company will only pay | | | | Installment Refund: The Company agrees to |
| the benefits up until the time of death. | | | | continue to make payments to the beneficiary |
| In the event the annuitant dies during the | | | | until the total of the payments made to the |
| accumulation period (i.e. the time that payments | | | | annuitant and to the beneficiary equals the |
| are being made on the annuity, but prior to | | | | amount the owner paid for the annuity plus the |
| annuitization) proceeds will revert to the | | | | interest earned. The longer the payout is to |
| beneficiary, or if none is named, to the estate. | | | | continue after the annuitant’s death, the |
| Because this limits potential payouts, it will provide | | | | smaller will be the periodic payments. |
| a higher return than other plans. | | | | ? Annuities with refund options pay annuitants |
| The Straight Life Annuity provides the maximum | | | | lower amounts of income than do comparable |
| income per dollar of outlay. | | | | contracts without them. The refund option |
| LIFE INCOME WITH PERIOD CERTAIN | | | | represents an extra benefit for the contract |
| The Life Income with Period Certain guarantees | | | | owner and an extra cost for the company. |
| that annuity payments to a beneficiary will be | | | | TEMPORARY LIFE ANNUITY |
| made for a specific number of years, even if the | | | | The Temporary Life Annuity is a "combination" |
| annuitant dies before the end of this period. | | | | plan. Annuity payments will be made until either (a) |
| Payments to the annuitant will continue as long as | | | | the end of a pre-determined number of years, or |
| he or she lives. | | | | (b) until the death of the annuitant, whichever |
| LIFE INCOME WITH REFUND ANNUITY | | | | comes first. |
| The Life Income with Refund type of Annuity | | | | |