A life income pure/straight annuity pays for the recipient’s lifetime and ceases on death. The defining feature is that payments continue while the person is alive, but there is no continuation or death benefit after death—no payments to a beneficiary and no guaranteed period beyond the annuitant’s life. That’s why it isn’t a fixed-term arrangement (which ends after a set number of years), not tied to stock market performance (that would be a variable annuity), and not designed to increase payments with age (different annuity types handle growth or survivor features).

Dependents for coverage are defined by age limits and relationship. The key rule is that a dependent child can be covered up to age 26, and this includes natural and adopted children, with the option for coverage regardless of whether the child is married or unmarried. That’s why including natural or adopted children and allowing for both married and unmarried status up to 26 makes this option the best fit. In practice, other qualifying relationships like stepchildren or foster children are also covered in many federal plans, but the essential point is the up-to-26 age cap combined with the defined family relationships. The other options are too narrow, excluding either natural or adopted children or tying coverage to a narrower circumstance like being a full-time student.

Medicare Supplement policies are guaranteed renewable. That means the insurer must renew your policy as long as you pay the premium and continue to meet eligibility; they cannot cancel or nonrenew you because of your health status or changes in health. This protection helps ensure you don’t lose coverage just because you develop illnesses or incur higher medical costs. The policy can be terminated only for limited reasons such as nonpayment of premium, material fraud or misrepresentation, or if the insurer stops selling that specific Medigap plan in your area. Because health status cannot be used to cancel or nonrenew, the statement is correct.

The main idea is how life insurance death benefits are taxed. In general, when a death benefit is paid to a beneficiary, it is excluded from the beneficiary’s gross income, so it isn’t taxed as ordinary income. The key nuance is what form the payout takes. If the death benefit is paid as a lump sum to a named beneficiary, that amount is typically not taxable income at all. The money goes to the beneficiary without creating taxable income, which is why lump-sum payments are described as generally non-taxable. If the benefit is not paid in a lump sum but instead through a settlement option or kept with the insurer to be paid out over time, the principal amount remains non-taxable, but any interest that accrues on the proceeds or is included in the periodic payments is taxable as ordinary income. So the entire death benefit isn’t tax-free in that case—the interest portion is. The other statements are off because they imply the death benefit is always fully taxable or always tax-free regardless of payout form, or that tax depends solely on the beneficiary’s tax bracket. The tax treatment hinges on whether the payout is a lump sum (usually non-taxable) or installment/settlement payments (where interest portions are taxable). Therefore, the correct understanding is that a lump-sum death benefit to a named beneficiary is generally not taxable income.