Your client, Gustav, who is 65 years old and married to Lolita, has just purchased an immediate annuity to provide him with periodic monthly income for the rest of his life. Which of the following statements would be the best advice that you could provide to Gustav?

Gustav should consider a survivor or joint annuity to guarantee that benefits will continue to be paid to Lolita in the event he dies first.

Gustav would be better served by purchasing a variable deferred annuity and investing in the stock market for better returns.

Any annuity payments made to Gustav will be entirely income tax free.

Gustav should choose an individual life annuity since it provides him with the highest monthly payment.