Ten years ago, John purchased a deferred annuity and named his daughter, Suzanne, as beneficiary. Over the years, John invested $50,000 in the contract; upon his death, the contract was valued at $118,000. Assuming that John died without annuitizing and the contract contained the standard death benefit provision, how much will Suzanne receive?a. $50,000b. $68,000c. $118,000d. $57,000

In Deferred Annuity, with death benefits to beneficiary, all the benefits will be transferred upon the death of the purchaser i.e. on the value of the contract at the time of the death .

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sohail09753 sohail09753 · Answer 2 · 2022-01-01T07:24:07+01:00

Suzanne will receive the total amount of contract at the time of death that is $118,000.

The deferred annuity is the type of contractual agreement for the individual holding the contract to receive the entire sum assured at the time of death or at the time of retirement of the holder of the contract.

In the given case John purchased a deferred annuity contract of value $118,000 from which $50,000 was invested in the contract especially upon his death.

But, as per the guidelines at the time of death the beneficiary will receive the entire value of contract, that is $118,000.

Therefore, option c. is correct.

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