Final answer:
Tori has a life annuity with a period certain, which provides $500 monthly for life or ten years, whichever lasts longer. It offers income security for retirees and protection against inflation's effect on fixed incomes.
Step-by-step explanation:
The type of annuity Tori has is called a life annuity with a period certain. This annuity guarantees income payments for the lifetime of the annuitant or for a specified period (in this case, ten years), whichever is longer. Even if Tori lives beyond ten years, she will continue to receive the $500 monthly benefit for as long as she lives.
This provides a measure of income security and protection against longevity risk, which is the risk of outliving one's income. This type of annuity is particularly significant for retirees who rely on a fixed income from sources such as private company pensions, especially considering the impact of inflation over time that can erode purchasing power.