An insured annuity combines which elements?

An insured annuity combines which elements?

• A. Pays into a life insurance policy with annuity payments; builds a death benefit.
• B. Provides a guaranteed withdrawal from a separate investment account.
• C. Creates a loan against a life insurance policy.
• D. Converts retirement savings into only cash withdrawals.

Answer: (A)

An insured annuity blends life insurance protection with a guaranteed income stream. The annuity payments are funded through a life insurance policy, so the policy provides a death benefit to beneficiaries if the insured dies. If the insured lives, they receive the scheduled annuity payments; if they die earlier, the death benefit is paid to beneficiaries. This combines the security of a life insurance death benefit with the reliability of regular annuity payments, and it’s distinct from borrowing against a policy, or from taking withdrawals from a separate investment account.

An insured annuity blends life insurance protection with a guaranteed income stream. The annuity payments are funded through a life insurance policy, so the policy provides a death benefit to beneficiaries if the insured dies. If the insured lives, they receive the scheduled annuity payments; if they die earlier, the death benefit is paid to beneficiaries. This combines the security of a life insurance death benefit with the reliability of regular annuity payments, and it’s distinct from borrowing against a policy, or from taking withdrawals from a separate investment account.