If an annuitant dies during the accumulation period, his or her beneficiary will receive

The correct answer is A. the greater of the accumulated cash value or the total premiums paid. An annuity contract has two main phases: the accumulation phase and the annuitization (payout) phase . During the accumulation period, the annuitant contributes premiums that grow on a tax-deferred basis within the annuity. If the annuitant dies before the contract enters the payout phase, the insurer generally pays a death benefit to the named beneficiary.

In standard annuity provisions described in life insurance licensing materials, this death benefit is typically defined as the greater of the annuity’s accumulated value or the total premiums paid into the contract , often adjusted for any withdrawals. This provision protects the annuity owner’s investment by ensuring that the beneficiary receives at least the amount contributed to the contract or the current accumulated value, whichever is higher.

The other options are incorrect. The beneficiary does not receive the lesser amount, the contract does not terminate without value, and the beneficiary does not receive both amounts combined. Therefore, the correct answer is the greater of the accumulated cash value or the total premiums paid .