What type of annuity will allow Zack to buy a Porsche in cash while ensuring he leaves $500,000 to a hospital upon his death?

The type of annuity that will allow Zack to buy a Porsche in cash while ensuring he leaves $500,000 to a hospital upon his death is an insured life annuity. This option combines the benefits of receiving a regular income from the annuity with a life insurance component. The insured life annuity will provide Zack with a guaranteed income stream during his lifetime, and in the event of his death, it will also ensure that a specified death benefit—such as the $500,000 intended for the hospital—is paid out.

The life insurance component of the insured life annuity is crucial in this scenario because it guarantees that the funds meant for the hospital are protected, regardless of how long Zack lives. This feature allows Zack to meet his personal financial needs (like purchasing the Porsche) while simultaneously fulfilling his philanthropic intention to leave money for the hospital.

The other types of annuities, like a life annuity with a guaranteed term or a straight life annuity, do not necessarily include a death benefit directed towards a third party. While a life annuity with a guaranteed term may provide payments for a certain period and could allow for some financial stability, it does not provide the same level of guaranteed death benefit for the hospital. A straight life ann