Which insurance type pays benefits only as long as the annuitant is alive?

The insurance type that pays benefits only as long as the annuitant is alive is indeed annuities with life contingencies. This type of annuity is designed to provide regular income payments to the annuitant for their lifetime. The key feature here is the life contingency, which means that payments cease upon the death of the annuitant.

This structure is particularly beneficial for individuals looking for a reliable stream of income during retirement, as it ensures that they do not outlive their savings, a critical concern for retirees. The calculations involved in these annuities typically consider factors such as life expectancy and interest rates to determine the amount and duration of the payouts.

In contrast, the other types listed do not operate on this principle of payment duration tied directly to the life of the insured. Universal life policies and whole life policies are types of permanent life insurance, which provide a death benefit regardless of when the insured passes away, as long as premiums are paid. Term life insurance provides coverage for a specified term and pays death benefits if the insured dies within that term; it does not pay out benefits during the insured's lifetime. Thus, the unique characteristic of annuities with life contingencies makes them a distinct option focused on lifetime benefits.