Question $38$

$2$ pts

Tom is age $65$ and ready to retire. He wants to manage his risk of dependent old age. He has saved as much money as he thinks he will need and will also receive Social Security retirement benefits. Tom asks you if there are any other steps he can take to help him reduce the risk of dependent old age. You suggest that he may want to purchase a longevity annuity.

What is the major advantage of a longevity annuity that you will explain to Tom?

it is an immediate annuity

death tenefits are patid to a beneficiary if he dies during the deferral period

monthly benefits begin at an advanced age when other assets are more likely to have been depleted

hew ill have unrestricted access to the funds during the deferral period thorough loans or cach withdrawals