How does a life annuity with a period certain differ from a standard life annuity?

A life annuity with a period certain ensures that payments will be made for a specific duration, regardless of whether the annuitant is alive during that time. This feature provides a level of financial security to the annuitant's beneficiaries, as they will continue to receive payments for the designated period even if the annuitant passes away before that period expires.

This contrasts with a standard life annuity, where payments cease immediately upon the death of the annuitant. In a standard life annuity, there is no guarantee of payment for a specific duration beyond the life of the annuitant, meaning that if the annuitant dies shortly after the annuity begins, no further payments will be made, and any potential benefits to heirs are lost.

The other choices bring up characteristics that do not accurately describe the distinction between a life annuity with a period certain and a standard life annuity, focusing on elements like investment basis and conditions that do not apply to the specific features of these annuities.