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Richard Harris Wants to Elect the Single Life Annuity Option

Question 131

Multiple Choice

Richard Harris wants to elect the single life annuity option for retirement.His mother lived to age 92 and his dad lived to be 89.This annuity will pay Richard a set monthly payment for as long as he lives.What possible disadvantage might he face?


A) There will be no inflation protection.
B) There will be no flexibility for withdrawals in case of emergencies.
C) The balance of the money left over upon death will not be passed on to his heirs.
D) All of the above are correct.
E) Only A and C are correct.

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