When would a life annuity's beneficiary benefit from a guaranteed payout?

A life annuity provides a series of payments to the annuitant for the duration of their life. In some cases, to provide additional security, a guarantee clause is included. This clause assures that if the annuitant passes away before a specified minimum payout period has been met, the beneficiary will receive the remaining payments owed up to that guaranteed period.

The inclusion of a guarantee clause is pivotal because it serves to protect the investment made by the annuitant. Even if the annuitant dies shortly after the annuity begins payouts, beneficiaries can still receive benefits from the policy. This protects the financial well-being of beneficiaries and ensures that the annuitant's contributions are not entirely forfeited in the event of early death.

The other choices do not directly relate to the guaranteed payout aspect of a life annuity. For instance, while registered products and health statuses can influence the terms of an annuity, they do not inherently determine the presence of a beneficiary guarantee. Likewise, the marketing of the annuity as a high-return investment does not equate to guarantees for beneficiaries. The guarantee clause specifically addresses the concerns surrounding payouts to beneficiaries under specific circumstances, which is why it is the correct answer.