What happens if the annuitant dies after payments begin?
Unless you choose the cancellation option, any remaining payments will be made in accordance with the annuity option you selected. For example, if you had received 7 years of payments of a life with a 10 year guaranteed period payout option, the remaining 3 years of payments would be made to the beneficiary. If you select the cancellation option and the annuitant(s) die within six months of the purchase date, then a lump sum death benefit will be paid. The death benefit is equal to the present value of future variable income payments and premium allocated to fixed annuity payments, less any fixed payments already made. For deaths that occur after the initial six months, any remaining payments will be made in accordance with the annuity option you selected.
