New York Child Abuse Identification and Reporting Practice Exam

Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?

1. Single Life Annuity

2. Lifetime Annuity

3. Joint Life Annuity

4. Variable Annuity

The correct answer is: Joint Life Annuity

A joint life annuity is designed specifically to cover two or more annuitants and ensure that payments are made until the first of those annuitants passes away. This type of annuity offers a steady stream of monthly income, which continues until the death of the first person named in the contract, after which payments cease. This structure is particularly beneficial for couples or partners who want to secure income for the duration of their lifetimes but understand that only the first death will impact the payment. This differs significantly from other types of annuities, which may not take into consideration multiple parties or have different terms regarding payment continuance after death. The single life annuity only covers one individual and terminates upon their death, while a lifetime annuity doesn’t necessarily cover multiple annuitants in the same way. A variable annuity, on the other hand, is more focused on investment aspects and can fluctuate based on market performance, rather than providing guaranteed income based on the lives of two or more individuals.