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I am skeptical of this move for several reasons. This particular Annuity has an exit fee that starts at 10% the first year and
decreases 1% over the next 9 years.
That would make him 102 before he could take a withdrawal without a penalty.


You have said nothing that even hints that an annuity is correct.

Ask for a comparism of a CD investment to the annuity with death at 100.

Pay attention to the taxes on the annuity. An annuity in an estate will not get a steped up basis and the beneficiaary will have some regular income tax to pay if the annuity does not terminate with no value at death.

Since the CD has no growth potential the annuity might come out ahead but if you put the CD money into the same investment as the annuity the annuity will lose.

Since the income is not needed the risk to live style is minimal if the CD money goest into the market.

If you invest find a discount broker, don't use the bank. They lost your trust.
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