What happens in a life annuity with amount certain if the annuitant dies early?

In a life annuity with an amount certain, the structure guarantees that the annuitant will receive payments for a specified period, regardless of their lifespan. If the annuitant dies before the end of this guaranteed period, the remaining payments that are due will be paid to the annuitant's estate. This ensures that the value of the contract is preserved and that beneficiaries can still benefit from the payments that were promised in the event of the annuitant's early death.

This characteristic is essential in providing a sense of security for both the annuitant and their beneficiaries, as it acknowledges the possibility of death occurring before the guaranteed term concludes. Thus, option C accurately reflects the benefit of an amount certain in a life annuity, confirming that the remaining balance effectively goes to the estate of the annuitant.