Which settlement option provides payments to an annuitant but no residual value for beneficiaries?

The Life Income settlement option is designed to provide regular payments to the annuitant for their lifetime. One of the defining characteristics of this option is that once the annuitant passes away, no further payments are made to any beneficiaries, leaving no residual value. The primary focus of this settlement is to ensure that the annuitant receives a steady income for as long as they live, without concern for what happens afterward regarding remaining account values.

In contrast, other options such as Fixed Amount and Joint Survivor do not have this limitation. The Fixed Amount option allows for a specific dollar amount to be paid periodically but may have provisions for residuals depending on the contract terms. The Joint Survivor option typically continues payments until both designated individuals have passed away. Period Certain payments can provide income for a set time regardless of the annuitant’s lifespan, allowing for potential residual benefits.

Therefore, Life Income is distinctly recognized for its feature of providing payments solely to the annuitant, with no final benefit to heirs after the annuitant's death, making it the appropriate choice for this question.