Schedule A . b . Given their age , they will receive enhanced personal exemptions for this year ’ s taxes . c . They can claim a tax credit for gifts made to their grandchild this year . d . The Mayfields ’ standard deduction is greater than their itemized deduction . e . Both a and b are correct . 7 . During a benefits presentation for all city employees , the presenter talked about the need for those in attendance to think about long-term care needs . Peter was shocked to learn how much one year of nursing home care would cost . He is worried about depleting assets if he or his wife should need this type of care . He wants to know whether he and his wife should purchase long-term care insurance . Which of the following statements best represents the strategy that the Mayfields should consider ? a . Purchase long-term care insurance because their net worth , exclusive of home value , is less than $ 1.5 million . b . They do not need long-term care insurance because they can afford to self-insure the costs of care . c . They should expect to spend down assets to a point where they will become eligible for Medicaid , and as such , they do not need long-term care insurance . d . They do not need long-term care insurance because they can use a combination of assets , Medicare funding , and Medicaid reimbursement to fund care needs . 8 . Peter was recently approached by a financial adviser who wanted Peter to consider investing in a variable annuity for retirement . A few days later the adviser called Peter again and said that a variable universal life ( VUL ) insurance policy could also be used to fund retirement needs . Which of the following statement ( s ) is ( are ) true in relation to annuities and VULs ? I . Given their favorable tax treatment , variable annuities and VUL policies allow earnings to grow tax deferred until withdrawn .