If an annuity owner wants to ensure a death benefit is paid only after the annuitant dies, which type of contract should they purchase?

To ensure that a death benefit is paid only after the annuitant dies, the annuity owner should choose an annuitant-driven contract. In this type of contract, the death benefit is contingent upon the death of the annuitant rather than the owner. This means that the benefit is triggered specifically by the annuitant's death, aligning with the owner's desire to limit payment solely to that event.

In contrast, other types of contracts may not restrict the timing of benefit payments as desired. For example, owner-driven contracts can result in different situations where benefits might be paid based on the owner's circumstances rather than those of the annuitant. Additionally, variable annuities with living benefit riders are typically designed to guarantee minimum withdrawals or income while the annuitant is still alive, which doesn't fulfill the requirement of restricting death benefits solely to the event of the annuitant's death. Beneficiary-driven contracts focus on the entity designated to receive benefits, which does not directly control the condition under which those benefits are paid.