What type of annuity guarantees income payments for the rest of an individual's life and provides payments to a beneficiary if the individual dies before a specified period?

The choice of a Life Annuity with Period Certain is particularly appropriate because it combines two essential features: a guarantee of lifetime income payments to the annuitant and a specified period during which payments will continue to a beneficiary if the annuitant passes away before that timeframe.

This type of annuity effectively mitigates the risk of outliving one’s assets by assuring that the individual receives income for their entire lifetime. The period certain aspect ensures that if the annuitant dies before that specified period ends, the designated beneficiary will still receive the remaining payments. This dual benefit addresses both the annuitant's financial security and the desire to leave an inheritance or financial support for loved ones.

In contrast, other types of annuities do not offer the same combination of lifetime income guarantee and beneficiary protection. Fixed and variable annuities may provide guaranteed payments or investment options, respectively, but they do not inherently include a guarantee of payments continuing to a beneficiary if the annuitant dies early. Immediate annuities primarily focus on providing income shortly after purchase without specifically addressing a period certain. Thus, the Life Annuity with Period Certain stands out as the option that meets all the specified criteria.