To supplement their income in their senior years, Harold purchased a fixed immediate annuity at age 65, naming his spouse, Lucy, as the joint annuitant under a joint and 50% survivor annuity payout option that pays the couple $1,000 per month. If Harold were to die today, which of the following statements would be CORRECT?
A) Lucy would continue receiving monthly benefits of $1,000, but only for her remaining life expectancy, at which time payments would cease if she were still alive.
B) Lucy would continue receiving monthly benefits of $500, but only for her remaining life expectancy, at which time payments would cease if she were still alive.
C) Lucy would continue receiving monthly benefits of $500 for the remainder of her life.
D) Lucy would continue receiving monthly benefits of $1,000 for the remainder of her life.
Ans: C) Lucy would continue receiving monthly benefits of $500 for the remainder of her life.
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A) SSx B) SSwithin C) SSbetween D) SSy
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Indicate whether the statement is true or false
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