The most important question is: "How much capital am I drawing from my savings and is there a chance I'll exhaust this capital prior to death?"

If, for instance, she is drawing $1,000 capital monthly (i.e., withdrawals in excess of portfolio income), then she should seriously consider buying an annuity paying $1,000 monthly instead. This takes the capital reduction of the portfolio in one large hit (reducing liquidity and potentially impairing the legacy) but eliminates the monthly capital reduction for life.

Annuities are lousy investments, but they are wonderful insurance. They should be used to reduce the likelihood of total capital depletion, but no more than that.