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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Retirement Products

Ms. Iyer, 58, wants a pension product that gives her a regular income for life, with the annuity continuing to her husband after her death and the purchase price returned to the nominee after the husband's death. Which annuity option fits?

A joint life annuity with return of purchase price fits. It pays income for as long as either spouse lives and returns the purchase price to the nominee after the survivor dies, meeting both the spouse-continuation and capital-return requirements.

  1. AJoint life annuity with return of purchase priceCorrect
  2. BLife annuity without return of purchase price
  3. CAnnuity certain for 10 years
  4. DDeferred annuity with no survivor benefit

Explanation

A joint life last survivor annuity pays until the death of both spouses. The return of purchase price variant gives the original price to the nominee at the end. The life annuity without return stops at her death, so it fails both needs.

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