What type of annuity option pays the remaining balance to a beneficiary upon the annuitant's death?

The correct choice, which describes the scenario where the remaining balance is paid to a beneficiary upon the annuitant's death, is the Cash Refund Option. This type of annuity provides a guarantee that if the annuitant passes away before receiving payments equal to the total amount invested in the annuity, the remaining funds will be returned to a designated beneficiary. This ensures that the full value of the annuity is not lost upon the death of the annuitant.

In contrast to the Cash Refund Option, a Life Annuity Option typically stops payments upon the death of the annuitant, regardless of how much had been paid in. The Term Certain Option provides guaranteed payments for a specified period, but if the annuitant dies during this period, the payments continue to a beneficiary only for the remainder of that term, not necessarily the entire balance. The Installment Refund Option allows for the remaining balance to be paid in installments following the annuitant's death, but it does not ensure a full payout like the Cash Refund Option.

Thus, the Cash Refund Option effectively addresses the concern of providing a financial benefit to beneficiaries after the annuitant's death, ensuring that their investment is protected and that there is a return of funds.