The type of annuity in which all payments cease upon the death of an annuitant...

Alife annuityis the type of annuity in whichall payments cease upon the death of the annuitant. Under Pennsylvania annuity principles, life annuities are designed to provide income that the annuitant cannot outlive, but they do not guarantee payments beyond the annuitant’s lifetime.

Pennsylvania-approved insurance study materials explain that once the annuitant dies, no further payments are made to beneficiaries unless a specific settlement option or rider—such as a period certain or refund provision—was elected. Without such provisions, the insurer retains any remaining value, which is how the longevity risk is managed.

The other options are incorrect. Equity annuities and variable annuities describe investment structures, not payout duration. A terminal annuity is not a recognized annuity classification under Pennsylvania insurance definitions. Therefore,life annuityis the correct and verified answer according to Pennsylvania Life, Accident, and Health Insurance documentation.