The question was: The reversionary annuity–a life insurance policy that offers a predefined lifetime income death benefit, rather than a lump sum death benefit–generally includes which of the following options?
a) A return of premium
b) Limited pay scenarios
c) Minimum certain period for benefit payments
d) Inflation protection.
e) a, c and d
f) a, b, c, and d
The answer is: f. Most reversionary annuities offer features a, b, c and d, according to Chuck Preti, co-founder of Life and Annuity Brokerage Solutions, LLC, a Niagara Falls, N.Y.. In a November 3, 2008 National Underwriter article, Preti also says that, in its basic form, the reversionary annuity provides no benefit if the beneficiary dies before the insured. However, he adds, the that the products typically offer flexible options such as accelerated benefits, a reduced monthly benefit, term insurance and a waiver of premium rider. Reversionary annuities can be used in both standard and impaired risk cases.