A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?
a. joint and survivor
b. joint annuity

A

Explanation:

With this joint and survivor annuity, the married couple gets a payout of 250 dollars as long as they are alive. As the husband dies, his wife would receive 125 dollars for the rest of her life, which only amounts to 50% of the original payment. Monthly payments are lower compared to single-life annuity this is because the joint and survivor covers both the man and his wife. But however, at the death of the man's wife, the payment she was receiving stops too.

answer; i believe that the correct answer is ( owners investment)

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101