PSI Ohio Insurance Practice Exam

Which type of annuity provides monthly income until the first annuitant dies, covering two or more annuitants?

1. Joint life annuity

2. Lifetime annuity

3. Fixed annuity

4. Variable annuity

The correct answer is: Joint life annuity

A joint life annuity is designed to provide monthly income until the first annuitant dies, ensuring that the payments continue for as long as at least one of the annuitants is alive. This feature is particularly valuable for couples or partners who wish to guarantee an income stream for both individuals, providing financial security during their lifetimes. The other options do not fully capture this dual coverage aspect. A lifetime annuity typically focuses on payments to a single individual until their death, without consideration of a second annuitant. Fixed annuities and variable annuities refer to how the annuity payments are calculated or invested, but they do not inherently include the provision for multiple annuitants as a joint life annuity does. Thus, the joint life annuity is uniquely suited to fulfill the requirements set out in the question by ensuring ongoing payments for multiple individuals living, with the payments ceasing upon the death of the last annuitant.