A widow age 70 has $250,000 in savings that she wants to distribute to her 5 grandchildren at her death. She also has a need for income. Which of the following is the MOST suitable recommendation?

While this option would provide a death benefit to the grandchildren, it does not fulfill the widow's immediate need for income. Life insurance policies are typically designed for financial protection rather than providing a steady income stream during the policyholder's lifetime, making this choice unsuitable for her current needs.

This option does distribute the funds to the grandchildren, but the deferred annuities would not provide immediate income to the widow. Instead, the payouts would begin at a later date, which does not help her with her current financial situation, thereby failing to address her need for income.

This choice would fulfill the widow's intent to distribute her savings to her grandchildren, but it does not provide her with any income during her lifetime. Giving away the entire amount would leave her without the financial resources necessary to support herself, making it an impractical choice given her needs.