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Claires husband died and she was the recipient of his life insurance policy in the amount of $500,000. Rather than receiving a lump sum, Claire

Claires husband died and she was the recipient of his life insurance policy in the amount of $500,000. Rather than receiving a lump sum, Claire elects to receive an annuity of $50,000 per year for life and immediately receives the first payment of $50,000. Claire is 65 years old. Claire will exclude a fixed 30,000 per year from her income. True/False and Explain.

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