IFSE Institute Life License Qualification Program LLQP Question # 51 Topic 6 Discussion
LLQP Exam Topic 6 Question 51 Discussion:
Question #: 51
Topic #: 6
(Joe and Joy, both aged 65, have $280,000 in savings and a $200,000 joint first-to-die life insurance policy. They want to buy an annuity to provide steady income in retirement.
What type of annuity would best suit their needs?)
A.
A single life annuity, as their life insurance policy will fund the survivor’s retirement.
B.
A joint life annuity that will pay the survivor 50% of the full benefit.
C.
A T-90 annuity that will provide an income until at least the first death.
D.
A variable income annuity that can provide larger sums if the market performs well.
Ajoint life annuitythat pays50% to the surviving spouseensures continuous but reduced income after the first death, matching their needs for steady, predictable income while still protecting the surviving spouse.
Exact Extract:
"A joint life annuity continues to pay income after the first death, either fully or at a reduced percentage (e.g., 50%). This arrangement provides income security for a surviving spouse."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 3.2.2.2 Joint Life Contract)
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