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NEW QUESTION: 1
Mr. Fast Lane met an early death at the age of 42. Mr. Lane had been making contributions to a variable
annuity contract for several years, and at the time of his death, his contributions totaled $25,000.Although
the value of the contract had at one time reached $40,000, earnings included, a downturn in the market
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death benefit associated with this contract under these circumstances?
A. the average of what its value once was and what it is today: $31,500
B. nothing, since the contract now has a value that is less than Mr. Lane's total contributions
Since Mr. Lane died while he was still making contributions, his beneficiaries will receive
$ 25,000. If the annuitant dies during the accumulation period, the death benefit is equal to the value of the
contract or the total of the contributions, whichever is greater.
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