Question

Pension is payable to a member at the rate of Rs. 2000/- p.m. as long as he is alive, and on his death, his spouse is entitled to a pension of Rs. 1000/- p.m., which is payable as long as the spouse is alive. What annuities are suitable for this member?

a.

Immediate annuity with Survival Benefits & Increasing immediate annuity

b.

Annuity certain for n years and for life thereafter

c.

Joint Life annuity

d.

Last survivor annuity & single life annuity

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).Last survivor annuity & single life annuity Explanation:As long as the member is alive, Rs. 2000/- p.m. is received (Rs. 1000 from LSA and Rs. 1000 from SLA). On the member’s death, SLA would cease, and Rs. 1000 would be payable to the spouse from LSA as long as the spouse is alive. If the spouse dies before the member’s death, the member would receive Rs. 2000/- from LSA and SLA as long as he is alive, and both contracts get terminated on his death.

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Q. Pension is payable to a member at the rate of Rs. 2000/- p.m. as long as he is alive, and on his death, his spouse is entitled to a pension of Rs. 1000/- p.m., which is payable as...
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