What kind of annuity do the Carters have if Mrs. Carter continues to receive payments after Mr. Carter's death?

When Mrs. Carter continues to receive payments after Mr. Carter's death, the type of annuity they have is a joint and survivor life annuity. This type of annuity is specifically designed to provide ongoing income for both individuals when they are alive, and it guarantees that payments will continue to one of the individuals for as long as either is living. In this case, after Mr. Carter passes away, the annuity ensures that Mrs. Carter still receives payments, demonstrating the survivor benefit feature inherent to joint and survivor annuities.

While other options may include different configurations of annuities, they do not provide the same level of protection for the surviving spouse concerning ongoing income after the primary annuitant's death. For instance, a single premium annuity refers to an annuity purchased with a one-time lump sum payment but does not guarantee payouts to a survivor. A term certain annuity pays benefits for a specified term regardless of the annuitants' lifetimes, meaning that if both individuals were to die before the term ends, the payments would stop. A fixed annuity guarantees a certain payment amount over time but does not inherently provide for a survivor benefit.

Thus, the joint and survivor life annuity is the only option that accurately