Final answer:
An annuity is the product that will protect an individual from outliving their money, as it provides a fixed stream of payments for life. Other options, like life insurance policies, offer death benefits but don't guarantee income during life for retirement needs.
Step-by-step explanation:
The product that will protect an individual from outliving his or her money is C) An annuity. An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees. It is purchased with a lump sum or through installments over a period. An annuity provides a steady, guaranteed source of income for the rest of a person's life, which can be essential for saving for old age.
A permanent life insurance policy, such as adjustable life policy and joint and survivor policy, primarily provides a death benefit rather than income during life. Therefore, they are not the best options to prevent outliving one's money. Instead, they serve as a means to provide for beneficiaries after the policyholder's death. While some may accumulate a cash value, this is not guaranteed to cover all retirement expenses.
Those approaching retirement should consider the tradeoffs between the degree of risk and the rate of return when choosing how to allocate their savings. Understanding the fixed nature of pensions as 'defined benefits' and their potential issues with maintaining buying power due to inflation is also crucial.