Which of the following best describes the death benefit provision of a variable annuity?
A) The principal amount at death is the greater of the total of premium payments or the current market value.
B) Upon death, the beneficiary has a choice of settlement options.
C) If death should occur prior to age 59½, the 10% early withdrawal penalty does not apply.
D) Upon death, the proceeds pass to the beneficiary free of federal income tax.
Answer: A) The principal amount at death is the greater of the total of premium payments or the current market value.