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Evan phoned his representative when he received his most recent statement on his deferred annuity. Evan is 65 and purchased the fixed annuity seven years

Evan phoned his representative when he received his most recent statement on his deferred annuity. Evan is 65 and purchased the fixed annuity seven years ago to be a conservative part of his portfolio. Evan has read and heard a lot about how the market is beginning to take off and that variable annuities have considerable growth potential. He wants to get out of the fixed annuity and purchase a variable annuity to earn a higher return. The representative should:

A. Recommend that Evan consider an exchange into a variable life insurance policy because it has growth potential with a death benefit.

B. Recommend that Evan surrender the annuity and invest in bond mutual funds because they work similar and cost less.

C. Review Evans investor profile factors and other facts to determine a suitable course of action to address his concerns and needs.

D. Update his investor profile factors and risk tolerance, and discuss with Evan the long term focus of a variable annuity and how it will outperform the fixed annuity within the first couple of years.

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