Peter (age 62) and Natasha (age 49) purchased an annuity from their long-time financial advisor. The total amount of money that Peter and Natasha invested in the annuity over their working life was $250,000. Beginning when Peter is age 62 (now), they will receive $2,000 per month (adjusted for inflation annually) for the remainder of their joint lives. What is the tax-free amount of each payment? If Peter and Natasha both die when the unrecovered cost in the annuity is $100,000, is there a deduction or other means whereby they can benefit from this unrecovered cost?