Your Aunt Marie and Uncle Joe are both 60 years old. They are healthy and both have family histories of long lives. They plan to work until they reach full retirement age for Social Security. They have accumulated savings of $800,000 and expect to add another $200,000 before retirement. They would like to supplement their Social Security income by investing their savings. They have two grown children that are both financially secure but Marie and Joe would like to leave the children and grandchildren something if possible, but not at the expense of their own financial security.

In 1 to 2 pages (single spaced), explain to them the difference between a Deferred Annuity and a Variable Annuity. Recommend and explain any features or options they should consider. [Dont worry about pricing and benefit levels just stick to the basics.]