If an annuitant dies before the total contract value has been paid out, what is this provision known as?

The provision referred to when an annuitant dies before the total contract value has been paid out is known as an Installment Refund Annuity. This type of annuity ensures that if the annuitant passes away before receiving payments that equal the total value of the annuity, the remaining balance is paid out to a designated beneficiary, typically in the form of continued periodic payments until the total amount that was originally invested has been fully distributed.

This feature is critical for providing financial security to the beneficiaries, ensuring that the investment made by the annuitant does not wholly vanish upon their death. It protects the value of the annuity and fulfills the intended purpose of providing financial support, thus offering peace of mind that the funds will be utilized effectively, even if the annuitant does not live long enough to exhaust the contract's value.

Other options such as a Life Annuity with Period Certain, Fixed Annuity, and Variable Annuity describe different types of annuity products, but they do not specifically address the situation where the contract value remains unpaid due to the annuitant’s death. For instance, a Life Annuity with Period Certain guarantees payments for a specified minimum period but may not necessarily cover the total contract value if