Matteo owns a nonqualified deferred annuity that has a current value of $50,000. He has 2 children, ages 11 and 17. If he decides to devote this annuity solely to help pay for their college education, and his goal is to maximize the annuity income payments, which of the following is the best option?
A) Convert to an immediate annuity using a straight life annuity income option
B) Convert to an immediate annuity using a 10-year period certain and life annuity income option
C) Convert to an immediate annuity with an installment refund annuity income option
D) Convert to an immediate annuity using a 10-year period certain annuity option
Ans: D) Convert to an immediate annuity using a 10-year period certain annuity option
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