Which best describes a life annuity with a period certain option?

A life annuity with a period certain option combines two key features: the lifetime income for the annuitant and a guarantee that payments will continue for a specified period, regardless of whether the annuitant is still living. This means that if the annuitant passes away before the specified period ends, the payments will continue to be made to a designated beneficiary for the remainder of that period.

This structure provides a sense of security for both the annuitant and the beneficiaries. It ensures that if the annuitant dies early, the beneficiary will still receive a stream of income for the agreed-upon period, which can help with financial planning and security for the survivor. Overall, this combination of lifetime benefits plus a guaranteed payment period creates a more robust financial product, appealing to individuals looking for both income stability and provision for their loved ones.

The other options do not capture the full essence of the life annuity with a period certain option. Some only focus on lifetime benefits without any reassurance for beneficiaries, while others imply fixed durations or market variability that do not align with how a life annuity with a period certain operates.