Louisiana Life and Health Practice Test 2026 – Complete Exam Preparation

Question: 1 / 400

If Phil wants an annuity that ensures he cannot outlive the benefits, which option should he select?

Guaranteed minimum interest

Guaranteed lifetime withdrawal benefit

Selecting a guaranteed lifetime withdrawal benefit for an annuity is the ideal choice for Phil if he wants to ensure he cannot outlive the benefits. This type of annuity feature provides him with a regular income stream for the duration of his life, regardless of how long he lives, which addresses the risk of outliving his savings.

In contrast, guaranteed minimum interest relates to the returns on the investment within the annuity but does not specifically guarantee income flow during retirement. A fixed rate of return ensures a stable investment growth but similarly does not guarantee a lifelong income stream. An indexed annuity ties returns to a stock market index, again focusing on investment growth and not offering a guaranteed income for life.

Therefore, the guaranteed lifetime withdrawal benefit is specifically structured to provide Phil with lifelong financial security.

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Fixed rate of return

Indexed annuity

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