The problem is dealtwithofcalculating a couple's net premiumandreservewhen they are insured against pension annuity (including deathinsurance) as insurants.
Although they cannot draw more than the maximum amount - which is approximately equal to a good health annuity - there is more flexibility over the death benefits.
According to this story, some companies use the Social Security death file as a source to make sure that they are not continuing annuity payments, but for determining that life insurance payments need to be made, not so much.
Moreover, insurance companies are set to unleash an onslaught of flexible annuity products, such as Lincoln Financial's i4Life plan, which is a variable annuity that hedges against inflation, puts a floor under income payments and provides a death benefit if your die before 85.