Jack and diane are looking at variable annuities. the two have been married for a long period of time. they are contemplating between getting a life annuity for diane or getting a joint and last survivor annuity for the two of them. they would be contributing the same amount to the annuity in either case, but they are assuming that since the joint and last survivor annuity covers both of them, that they would receive higher monthly payments from that annuity. the annuity is intended to supplement their social security income and the couple pay bills. how should their agent handle this scenario?
(a) the agent should just split the money up and sell them two variable annuities, one life annuity and one joint and last survivor annuity.
(b) the agent should inform them that since the joint and last survivor annuity covers two people, it would, in fact, have a higher monthly payment.
(c) the agent should inform them that since the joint and last survivor annuity must cover the life expectancy of both of them, that the payout from this option will actually be less than that from a life annuity for diane alone.
(d) the agent should tell them that with a joint and last survivor annuity, both individuals must be living to receive payments.