If the Annuitant, now deceased was receiving income from a Pure Life or Straight Life annuity, how much goes into the annuitant's estate for valuation?

• A. All
• B. Some
• C. Nothing
• D. Half

Answer: (C)

Pure life (straight life) annuities pay income only for the life of the annuitant and stop at death, with no guarantee period or refund of principal. Because there are no future payments or benefits due to heirs once the annuitant dies, nothing from the annuity remains to be included in the estate for valuation. Only if a guarantee period or refund feature were present would there be some value to the estate.