Nick is single and retired at the age of 55. He does not have any dependent family members. Nick wants to purchase an annuity that will give him the largest monthly income. What annuity would you recommend to him

Question

Business

Gideon Sampson

11 December, 16:09

Nick is single and retired at the age of 55. He does not have any dependent family members. Nick wants to purchase an annuity that will give him the largest monthly income. What annuity would you recommend to him

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Answers (2)

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Butter · Answer 1

Answer: Straight life annuity

Explanation:

The annuity that I will recommend to Nick is the straight life annuity. The straight life annuity gives the largest amount of periodic income.

The straight life annuity also called the straight life policy, is a retirement income that pays the benefit until the death of the person.

After the death of the annuity owner, the payment stops and any further death benefits or beneficiary payments is forgone. This makes the straight life annuity to be less expensive than other forms of annuities.

Holly · Answer 2

straight life annuity

Explanation:

A straight life annuity provides the largest income because it stops when the annuitant passes away. Since Nick is single and doesn't have any children or other dependent, he doesn't have to care about anyone else. Generally the annuitant makes a large payment and the insurance company starts providing them with monthly payments after a certain period of time. Men usually receive more money because they life span is shorter than women's.

Anyone can get a straight life annuity, even those with spouses or children, but generally when a person has heirs they seek other types like period certain annuities that guarantee a minimum amount of payments, or joint and survivor annuities where the payments continue after one or even both annuitants die.