Which settlement option provides payments to an annuitant without any residual value to a beneficiary?

The option that provides payments to an annuitant without any residual value to a beneficiary is Life Income. This settlement option is designed to provide guaranteed income to the annuitant for the remainder of their life. Once the annuitant passes away, the payments cease and there are no remaining funds to be passed on to a beneficiary. This feature is crucial for individuals who prioritize a steady income stream during their lifetime without concern for leaving a financial legacy.

In contrast, other settlement options have different characteristics. Fixed Amount and Installment Payable options typically involve a distribution to the beneficiary after a specified amount has been exhausted or when the insurance funds are distributed over a set period. The Interest Only option involves the insurance company holding onto the policy proceeds, paying the beneficiary interest while the principal remains intact, which can later be distributed. Therefore, in these cases, there could be remaining value or benefits for a beneficiary, making Life Income the choice that solely supports the annuitant during their life.