Which settlement option pays a stated amount to an annuitant but offers no residual value to a beneficiary?

The Life Income settlement option guarantees that the annuitant will receive payments for the duration of their lifetime, which provides financial security during their lifetime. However, once the annuitant passes away, there are typically no remaining funds to be distributed to any beneficiaries; this is what is meant by having no residual value. This settlement option focuses on ensuring a steady income stream rather than leaving a balance to heirs.

In contrast, the other options may provide some level of benefit or value to beneficiaries after the annuitant's death. For example, the Fixed Period option might pay out benefits over a predetermined period regardless of whether the annuitant is alive or deceased at the end of that term, potentially leaving a balance. Similarly, the Fixed Amount option pays out a specified dollar amount until the principal is exhausted, which could leave a remainder. Even the Interest Only option, where the principal remains intact while only the interest is paid out, offers the potential for residual value after the annuitant's death.

Thus, the emphasis of the Life Income settlement option on lifetime payouts without a provision for beneficiaries aligns perfectly with the criteria of the question regarding the absence of residual value.