Ralph is a 70-year-old retired fireman with no dependents. He wants to invest in
ID: 2553395 • Letter: R
Question
Ralph is a 70-year-old retired fireman with no dependents. He wants to invest in an annuity that will produce a steady stream of income that begins now and continues throughout his life. He has $175,000 to invest and wants to receive the most income he can every month. Which of the following is the most suitable annuity for Ralph based on his objectives?
A fixed income annuity with a 10 year term certain.
A variable annuity with a guaranteed death benefit.
A longevity annuity.
An immediate, single-premium life annuity.
A fixed income annuity with a 10 year term certain.
A variable annuity with a guaranteed death benefit.
A longevity annuity.
An immediate, single-premium life annuity.
Explanation / Answer
Answer is:
An immediate, single-premium life annuity
A 70- year old man who can invests $1 Lakh in a single life annuity will be getting $7956 per year or can get $6684 for payouts that will comtinue as long as he or his wife lives.
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