Which of the following statements comparing annuities to life insurance is (are) correct?

1. The primary function of life insurance is to create an estate or principal sum; the primary function of an annuity is to liquidate a principal sum, regardless of how it was created.

2. Both life insurance and annuities protect against loss of income - life insurance furnishes protection against loss of income arising out of premature death; an annuity provides protection against loss of income arising out of excessive longevity.

a. 1 only.

b. 2 only.

c. Both 1 and 2.

d. Neither 1 nor 2.