The "death benefit" associated with a variable annuity contract means that if the contract holder dies:__________. A. prior to annuitization, the amount invested in the contract is returned to a beneficiary B. after annuitization, the amount invested in the contract is returned to a beneficiary C. prior to annuitization, the insurance company will make a lump sum payment to complete the terms of the contract D. after annuitization, the insurance company will pay for the insured's burial expenses
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The "death benefit" associated with a variable annuity contract means that if the contract holder dies, the correct answer is:
A. prior to annuitization, the amount invested in the contract is returned to a beneficiary
In this case, if the annuity holder passes away before annuitization (the conversion of the contract into a series of periodic payments), the beneficiary will receive the amount invested in the contract as a death benefit.